MBA Managerial Effectiveness and Ethics 01 (2) (2) - Combined

UNIT
01 Effective Communication
Names of Sub-Units
Concept of Communication, Importance of Communication, Process of Communication, Types of

Communication, Principles of Effective Communication, Addressing the Barriers to Communication,
Technology and Business Communication
Overview
The unit begins by explaining the concept of communication—its definitions, importance, types,
process and principles. You will learn why communication is important for businesses.
Learning Objectives
In this unit, you will learn to:

 Explain the concept of communication
 Describe the importance of communication
 Discuss the process of communication
 List the types of communication
 State the principles of effective communication
Learning Outcomes
At the end of this unit, you would:

 Evaluate the application of communication in business
 Appraise the role of technology in communication
JGI JAIN
DEEMED-TO-BE UNI VE RSI TY
Managerial Effectiveness and Ethics
Pre-Unit Preparatory Material
 https://www.manage.gov.in/studymaterial/ec.pdf
1.1 INTRODUCTION
Communication is a process of sharing information between two or more individuals to reach a common
understanding. It is a vital part of any human interaction. People need to express their thoughts, ideas,
feelings and views to connect with others and share information. They interact with each other in various
ways by using words, actions or expressions. Effective communication is of paramount importance for
people, whether it’s their personal life or professional life.
The success of any business depends a great deal on building sound professional relationships.
Communication is a crucial factor in developing good business relationships. It is of paramount
importanceforpeopletocommunicatetherightmessageattherighttimeandtherightplacewhiledealing
with customers, investors, government, media and various other stakeholders. Any miscommunication
or ambiguity in the message may negatively impact the image of the organisation. Apart from this, at
the workplace, there happens to be interpersonal communication between colleagues, superiors and
subordinates. They need to communicate with each other to explain common goals and objectives,
operational structure, job expectations, work ethics, rules and policies, etc. Lack of communication
among people at the workplace may lead to chaos and conflicts.
1.2 CONCEPT OF COMMUNICATION

Communication can be described as a process of expressing and transmitting ideas, thoughts, opinions
or beliefs among individuals, either verbally or nonverbally. In other words, communication is a process
that involves transferring information from one party to another. The word communication has been
derived from the Latin word communis, which means common. Thus, there can be no communication
unless there is a common understanding resulting from the exchange of information among individuals.
Different management experts have defined communication differently. The following are some popular
definitions of communication:
According to Oxford English Dictionary, Communication means the imparting, conveying, or exchange
of ideas, knowledge, etc., whether by speech, writing or signs.
According to Keith Davis, Communication is the process of passing information and understanding
from one person to another.
In the words of Keyton, Communication can be defined as the process of transmitting information and
common understanding from one person to another.
Thus, communication means to convey facts, ideas, feelings and thoughts. It is the most important
activity for social living.
1.2.1 Importance of Communication

Communication may be verbal or nonverbal but the basic objective remains the same, i.e., to express and
transmit ideas, thoughts, opinions or beliefs among individuals. In an organisation, the importance of
communication cannot be denied. Whether it is between the management and the employees or among
the employees or even between the organisation and its customers, communication needs to be effective
for the success the organisation wishes to achieve. Thus, all need to have good or rather excellent
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UNIT 01: Effective Communication JGI JAIN
communication skills. Business communication is the most important ingredient of any business.
However, small or big a business may be, its success depends on how effective its communication system
is, for communicating within or outside the organisation.
Inaccurate or ineffective communication may lead to conflicts within the organisation and loss of
goodwill outside it. Communication skills are a prerequisite to personal, academic and professional
success. Good communication skills help young managers kick-start their careers. In fact, according
to a study, the basic skills required at the entry-level of today’s jobs are communication skills, and
these include all aspects of communication, that is, oral, written and listening skills. Even for building
good relations in any profession, you require good interpersonal skills for which you need excellent
communication skills. For every profession, communication skills are important, as they help in the
smooth and effective working of an organisation. Good communication skills can enhance your career
growth and personality, and you have the confidence to influence and motivate rather than just
command and control.
Effective communication can help in achieving organisational success as well because the satisfaction
level of the employees increases and hence their productivity level multiplies. Even an individual’s
effectiveness increases by enhancing his/her communication skills. Thus, as it is in the interest of both
an individual and an organisation, it becomes very important for all to study Business Communication
as well as understand and adopt the various techniques that can help enhance the productivity of all,
thereby moving towards success. The success or failure of any organisation depends a great deal on
effective communication.
In an organisational setting, individuals can’t survive without effective communication. This is because
communication enhances the element of socialisation among individuals, which ultimately leads to
team spirit and enhanced productivity. Communication plays an important role in all the functions of
an organisation.
1.2.2 Process of Communication

Communication follows a cyclic pattern for the delivery of a message, fact, thought or idea.
Communication is a process that involves at least two people: sender and receiver. The purpose of
communication is achieved only when the receiver decodes the message and understands it the way the
sender wanted him/her to. There are six elements that make communication successful and effective.
Figure 1 shows these six elements:
Sender Encoding
Feedback Message
Decoding Receiver
Figure 1: Elements of Communication
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Let us discuss each of these elements in detail.

1. Sender: A person who sends the intended message to another individual(s). A sender is the source of
information in the process of communication. For effective communication, the sender should keep
in mind the background of the audience before sending any message.
2. Encoding: It is a process that puts the thoughts of the sender in a framework of symbols or words
for transmitting the message to the audience.
3. Message: It is a collection of symbols or words that conveys the intention of the sender. The message
is sent by the sender to the audience. Communication is said to be effective if the audience perceives
the same as what the sender intends to convey through the message. Thus, it is important for the
sender to compose a message in such a manner that it can easily be understood by the audience. The
message should be free from ambiguities so that it can be interpreted. Moreover, the sender should
select an effective medium of communication depending on the priority of the message.
4. Decoding: It is a process of deciphering the encoded message received from the sender and
understanding its intended meaning.
5. Receiver: The receiver is the person to whom the decoded message reaches. In other words, the
receiver is the audience or destination of the message.
6. Feedback: It is the response of the receiver to the message sent by the sender. Feedback is the
acknowledgement of receiving the message or a reply to the message.
1.2.3 Types of Communication

As discussed earlier, in an organisation, communication can happen at any level, such as between
employees, between managers and subordinates, between departments and between employees and
third parties like customers and suppliers. Communication can happen based on the target audience,
the purpose of communication and the communication channels used. Figure 2 shows different types
of communication:
Based on the Target • Internal Communication

Audience • External Communication
Based on the Purpose • Formal Communication

of Communication • Informal Communication
• Verbal Communication
Based on the
• Non-Verbal Communication
Communication
• Written Communication
Channels Used
• Visual Communication
Figure 2: Different Types of Business Communication

Let us now discuss different types of business communication in the following section.
Internal and External Communication

In an organisation, the target audience can be within the organisation (employees, managers and
departments) or outside the organisation (customers, suppliers, dealers and distributors). Thus,
communication can be internal or external in the organisation.
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Let us discuss these two types of communication in detail:

1. Internal communication: This type of communication occurs inside the organisation. Internal
communication is categorised into the following types as shown in Figure 3:
Internal Communication
Upward
Communication
Downward
Communication
Horizontal
Communication
Diagonal
Communication
Figure 3: Types of Internal Communication

Let us discuss the various types of internal communication.
 Upward communication: This type of communication flows from the lower level to the upper
level in the organisational hierarchy. For example, when a team member communicates to the
team leader, it is upward communication.
 Downward communication: This type of communication flows from the upper level to the
lower level in the organisational hierarchy. For example, when a team leader issues orders and
instructions to the team members, it is downward communication. Similarly, the announcement
of new policies and rules through official statements, boards, memos, reports, speeches and
notices is a form of downward communication.
 Horizontal communication: This type of communication flows between employees working at
the same level. For example, communication between a financial analyst and a market analyst
regarding financial plans is horizontal communication.
 Diagonal communication: This type of communication flows between individuals in different
teams and at different levels in the organisational hierarchy. For example, communication
between the head of the IT department and the marketing head regarding newly developed
marketing software is diagonal communication.
2. External communication: This type of communication occurs outside the organisation. For example,
communication between the production manager of an organisation and vendors regarding the
quality of raw material is external communication. The main aim of external communication is to
enhance organisational performance, goodwill and brand image.
Formal and Informal Communication

In an organisation, communication can happen for various purposes, such as sharing organisational
policies with employees, interviewing customers and maintaining relationships among employees.
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JGI JAINDEEMED-TO-BE UNI VE RSI TY
Based on the purpose, business communication can be divided into the following:
1. Formal communication: This type of communication takes place in an official style in professional
settings, business meetings and conferences. In such communication, some certain rules and
principles need to be followed while conveying a message. Formal communication requires a
straightforward approach and a line of authority. The use of slang words is prohibited in formal
communication.
2. Informal communication: Informal communication is a free form of communication and does not
follow any fixed pattern. This type of communication does not follow any rigid rule or guideline;
thus, it also evades any restriction of time or place. In organisations, informal communication helps
in understanding and addressing employee grievances as people express themselves freely while
talking informally.
Verbal and Non-Verbal Communication

In an organisation, communication can take place through various channels such as e-mails, memos,
speech and gestures. Based on the channels used, communication is classified into the following
categories:
1. Verbal communication: This type of communication involves the use of sounds, words and language.
Effective verbal communication is an integral part of any business. It is broadly classified into two
types, which are:
 Interpersonal communication: This type of communication takes place between two or more
people, generally at a personal level. In interpersonal communication, a message is transmitted
from one person to another.
 Public speaking: This type of communication takes place between a single speaker and a group
of audience for a common cause.
2. Non-verbal communication: It is a type of communication that involves the use of signs and
symbols. Non-verbal communication does not use words or sounds. It includes gestures, tone of
voice (inflections), smell, touch and body motion. For example, the gesture of a finger on the lips can
be used to tell the other person to be silent.
Written and Visual Communication

Apart from verbal and non-verbal communication, communication can also be categorised as written
communication and visual communication based on the channels used.
Let us discuss these two types of communication as follows:
1. Written communication: In this type of communication, a message is conveyed in a recorded
form. It includes e-mails, articles, reports and memos. Written communication can be used to
convey information formally or informally. For example, a notice regarding a change in the project
schedule on the notice board is an example of written communication. Written communication
lacks an immediate response from the receiver. Thus, there should be a careful selection of words
and phrases in the message.
2. Visual communication: This type of communication involves the visual display of information
through aids such as photos, signs, logos, codes, symbols and designs. It is one of the most effective
tools of communication as it attracts the immediate attention of individuals.
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1.2.4 Principles of Effective Communication

To make our communication, written or oral, effective, we need to keep in mind the 7 Cs of communication
that are depicted in Figure 4:
Clarity
Courtesy Completeness
Effective
Communication
Concreteness Conciseness
Correctness Consideration
Figure 4: The 7Cs of Effective Communication

Let us discuss each one of them to be able to make our communication more effective.
1. Clarity: The message that the sender wishes to send should have the same meaning for the receiver
as well. For this, the sender needs to have both the clarity of thought as well as the clarity of
expression. The process of communication begins with the generation of an idea in the mind of the
sender. But, is he/she clear about the message, he/she wishes to send across?
For this, a sender should be able to understand and answer the following questions:
 What is the objective of the message?
 What is the message?
 To whom do I wish to convey the message?
 Which would be the most suitable medium to convey the message most effectively?
Once the sender has clarity of thought, he/she needs to express the message in clear and simple
language. There is no use of sending a message if it cannot be understood correctly by the receiver.
To ensure clarity of expression, the following points must be remembered always: Use simple words,
avoid phrases, use active voice instead of passive voice, avoid jargon, avoid ambiguity and avoid
long sentences.
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2. Completeness: Communication must be complete to avoid any confusion in the mind of the receiver.
In fact, if the message is incomplete, the receiver is left guessing and thus causes delay further action
on the message issue. Therefore, the message needs to include all the required facts and details on
which further action might depend. It is advisable to check and see whether the message answers
the ‘five W’ questions — What, Why, When, Where and Who — before sending it across. In a business
scenario also, letters, notices, etc., need to be complete in all aspects to make our communication
effective and fast, because unclear messages delay further action.
3. Conciseness: Conciseness or brevity saves time and the message is communicated without being
lengthy. ‘Time is money,’ so why waste it. Say all you want to in the fewest possible words and you
will save time and money for both yourself and the receiver. Only relevant facts and details should
be added, and all unnecessary ones should be avoided. You should avoid trite and wordy expressions
to add more clarity. Repetition causes monotony even if you are trying to stress a point. And, of
course, you need to organise your message well to add effectiveness to your communication.
4. Consideration: Never prepare a message from your point of view alone, always keep the receiver
in mind and you can never go wrong. The sentiments of the receiver should always be understood
and kept in mind. The sender needs to adopt a more humane approach, and the needs and socio-
psychological background of the receiver should be understood. ‘First understand then be
understood’ is the golden rule for communication. For this, remember the following tips and
you have been considerate. Gender bias should be avoided because you need to look around and
understand that the business world is no longer dominated by men. So, use words free from gender
bias. Sometimes you may have to complain, refuse, say ‘no’, etc., but if done straightforwardly, the
impact may be harmful, even disastrous. Therefore, just sugar-coat what you say; in a business
letter, all is accepted calmly if expressed positively. In fact, saying or positively expressing ‘No’ tells
the receiver of your genuine difficulties and thus helps you retain your customers for the future.
Integrity can never be a redundant value, even in this highly materialistic world. So, go ahead and
display your values.
5. Correctness: Correctness in business communication includes the format, grammar, punctuation
and the spelling. It’s always good to keep a dictionary handy, to look up a word rather than to make
a grave mistake. You need to remember that correctness also implies giving correct facts. Therefore,
correct facts, correct format, correct grammar, correct spellings and correct time enhance the
effectiveness of the communication process.
6. Concreteness: Instead of vague or generalised statements, our communication needs to be specific.
Our words should be supported by relevant facts and figures.
7. Courtesy: Last but not the least is courtesy. Courtesy and good communication skills empower us
and help us build better relationships in both our personal and professional lives, and go a long
way. In a business scenario as well, this basic human value is very much required. We need to create
friendliness around us whether it is between us and the others in an organisation or between us
and our customers and dealers. The golden rule is ‘Treat others as you wish to be treated’. An act of
courtesy will gain you many more friends than an act of rudeness or arrogance.
1.2.5 Addressing the Barriers to Communication

Communication often faces several obstacles that distort the intended meaning of the message. These
obstacles are called communication barriers.
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The barriers to communication can be categorised into various types, which are shown in Figure 5:
Organisational Personal Other

Barriers Barriers Barriers
 Unfavourable  Stereotyping  Use of jargon

communication  Halo effect  Distance
environment
 Fear of high ranking  Dilution of the actual
 Complexityin
 Poor communication message
communication policy
skills  Lack of response
 Excessive authority
 Psychological barriers
layers
 Lack of open-door policy
 Sexual harassment at
 workplace

 Glass ceiling
Figure 5: Barriers to Business Communication

Let us discuss barriers to business communication.
1. Organisational barriers: The barriers that develop within an organisation are called organisational
barriers. These barriers often put a negative impact on the flow of information. The organisational
barriers can be categorised into the following types:
 Unfavourable communication environment: If communication takes place in an environment
that is full of trust and confidence, it results in a positive response from the receiver. On the other
hand, if communication takes place under an unfavourable environment, even well-formulated
and meaningful information produces a negative impact. Thus, the communication environment
of an organisation significantly impacts the effectiveness of business communication.
 Complexity in communication policy: Complex communication policies lead to creating a
poor communication system within an organisation. This is because many employees fail to
understand these policies, which ultimately leads to a communication failure. A well-designed
communication policy encourages an easy flow of communication among employees and
departments.
 Excessive authority layers: Too many layers of authority in an organisation lead to a poor
flow of communication. This is because information reaches its final destination after passing
through several hierarchical levels. This may lead to distortion of the information and may also
cause a delay in communication.
 Lack of open-door policy: Open-door policy can help in fostering communication between
management and lower-level employees. This policy relates to the concept that the manager’s
door is always open for communication. With this policy, employees can approach the top
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management without any hitch and talk about anything. Lack of such a policy may decrease
the level of communication among employees.
 Sexual harassment at the workplace: Sexual harassment can affect working conditions and
may lead to a hostile working environment. It could negatively impact the working ability and
performance of an employee. Many individuals often find it difficult to handle such instances of
sexual harassment and do not know when to speak up. This badly affects the communication
process within the organisationasthe person mayfeel embarrassed or afraidof the repercussions.
However, the major step to deal with such a situation is to communicate the issues to individuals
who can help to resolve the same.
 Glass ceiling: Glass ceiling is a phrase, introduced in the 1980s, for the artificial barriers that
create obstacles in the way of women and minorities in terms of leading to higher positions in
the organisation. The United States Federal Glass Ceiling Commission defines the glass ceiling
as the unseen, yet unbreachable barrier that keeps minorities and women from rising to the
upper rungs of the corporate ladder, regardless of their qualifications or achievements. Glass
ceiling is one of the major reasons behind the creation of a communication barrier within an
organisation. It escalates the issues of gender differentiation and gender stereotyping which
prevents individual(s) to raise their voice against the biasness and communicate effectively.
2. Personal barriers: Communication barriers that are created at an individual level (by sender/
receiver) are called personal barriers. Some factors, such as attitude towards superiors, colleagues
and other team members largely affect the flow of information. A negative attitude may lead to
distortion of information, which may act as a barrier to effective communication. Let us discuss the
major types of personal barriers:
 Stereotyping: It refers to categorising people into a single class based on some common trait.
In stereotyping, the receiver compares the sender with some other person based on a common
trait. This affects the objectivity of effective communication as the receiver may misjudge the
intention of the sender.
 Halo effect: It is a type of perceptive bias where a particular perception of one’s personality trait
influences the perception of the entire personality of that person. For example, if you consider a
person kind, you may also tend to think that he/she is intelligent, hard-working and generous.
 Fear of high ranking: Sometimes, people are not comfortable in exchanging their views and
ideas with their superiors. In such a case, it would be difficult for superiors to understand what
is required and take appropriate actions. This leads to a communication gap between employees
and their superiors.
 Poor communication skills: Sometimes people do not have effective communication skills. This
may create chaos and misinterpretation of the message by the receiver. For example, improper
usage of grammar may make the information unclear.
 Psychological barriers: Some emotional or mental factors such as prejudices impact the
perception of the message by its receiver. It leads to various consequences, such as pre-evaluation
of information before it is received, selective listening, selective retention and selective transfer
of information.
3. Other barriers: Apart from the aforementioned barriers, there are certainly other types of barriers,
which are described here:
 Use of jargon: Jargon refers to difficult or special words, which are specific to a group or
profession. For example, it would be difficult for a marketing head to understand complicated
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networking terminology used by the IT head in an e-mail. In such a case, the whole communication
would become futile.
 Distance: The physical distance between the sender and the receiver may delay communication
and affect the expectations of both the sender and the receiver.
 Dilution of the actual message: Dilution of information takes place when one person gets the
information and passes it on with addition or omission to the other person.
 Lack of response: Lack of response or inappropriate response from the receiver discourages the
sender to communicate further. This creates a communication gap between the two.
Barriers to business communication hamper the smooth functioning of organisational activities.

Therefore, these barriers should be overcome at the earliest. The following are some measures that can
be taken to remove communication barriers:
 Setting a clear and meaningful purpose of communication
 Selecting an appropriate channel of communication
 Building trust by giving a response and value to the sender
 Training employees on effective communication skills
 Using simple and understandable vocabulary while communicating
 Ignoring jargon and irrelevant information to make communication simple and precise
 Counselling employees for eliminating their fear of superiors so that they can communicate
effectively
 Listening effectively so that there is no difference between what is said by the sender and what is
interpreted by the receiver
 Giving preference to face-to-face communication with team members to boost their confidence and
reduce communication gaps
 Giving preference to a noise-free and favourable communication environment
1.3 TECHNOLOGY AND BUSINESS COMMUNICATION

Gone are the days when business communication consisted of formal emails, meetings with managers
and attending one or two conferences by the top management. Today’s technological advances have
evolved business communication into a whole new level where employees are always connected. They
can participate in video conferences through their smartphones, chat with peers on social media
and manage tasks via automated tools. Although these technological developments have improved
workflow efficiency and transparency, they have also raised some concerns on the quality of business
relationships and productivity.
 Email (r)evolution: Email has evolved from simply being a method of sending and receiving written
messages to a means of workflow management. Now, you can flag priority messages and set tasks
for follow-up, trigger alerts for critical messages and send automated responses when out of the
office, and you can do all this through your mobile phone, without even logging on to your laptop.
 Workflow management systems: Workflow management systems for managing projects or
salesforce have increased collaboration among employees. Now, a team of salespeople no longer
needs to sit in the same building or in a lengthy meeting to share ideas or chase deals. From any
part of the globe, they will have a clear idea about the assigned tasks, documents, appointments and
progress by simply logging into an online workflow management system.
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 Automation: Companies across the world are jumping on the automation bandwagon to cut costs
and boost efficiency. With automated voice response systems, they can provide customer service
while ensuring that their employees are focused on other core tasks. The automated system handles
the call and directs the caller to the appropriate person in the organisation or retrieves data as
requested by the caller. There are ‘bots’ on websites and apps to deal with online requests for
information through live chats.
 Artificial intelligence: Artificial intelligence (AI) systems enable companies to forecast and influence
future sales based on customer preferences. They can assist marketing teams in tracking consumer
trends and adapting promotional efforts. For instance, on Netflix, you will see suggestions for
additional shows based on the history of shows you’ve watched so far.
 Remote collaboration: The freelance industry has grown substantially due to technological
advancements. Due to cost pressures and lack of adequate skills, companies today post their
requirements online. Freelancers are hired to collaborate with organisational managers and
employees through project management platforms. With the increased use of video conferencing
tools like Skype, now connecting with a ‘live’ person is just a matter of minutes. Companies not only
save time and effort but are also able to utilise the talented pool of resources wisely.
 Near-constant access: It is now easier to reach out to anyone, anytime, anywhere in the world.
Employees, and particularly, managers, are expected to be accessible and reply to emails even
when they are on leave. Although this is an advantage during unexpected emergencies, it has also
restricted the ability of individuals to relax during vacations. This may prolong their stress and
restrict their ability to manage effectively.
 More access to information: Thanks to Google and Wikipedia, employees today have more access
to information than ever before. If an individual comes across an unfamiliar term, he/she just types
a search query on Google and will have instant access to thousands of sources of information,
including Wiki pages, news articles, videos and online training courses, on the subject. With Google’s
Translate feature, two individuals from different languages and countries can collaborate without
a dedicated translation team. This capability has substantially reduced the impact of language
barriers on business communication.
Conclusion 1.4 CONCLUSION
 Communication can be described as a process of expressing and transmitting ideas, thoughts,

opinions or beliefs among individuals either verbally or non-verbally.
 In an organisation, the importance of communication cannot be denied. Communication needs to
be very effective for the success the organisation wishes to achieve.
 Communication has the following objectives: to exchange information, to provide advice and
counselling, to issue orders and instructions, to impart education and training, to motivate, to raise
morale, to give a suggestion, to persuade and warn.
 Communication follows a cyclic pattern and involves at least two people: sender and receiver. There
are six elements that make communication successful and effective. These elements are sender,
encoding, message, decoding, receive and, feedback.
 For makingour communication, written or oral, effective, we need to keep in mind these 7 Cs of
communication: clarity, completeness, conciseness, consideration, concreteness, concreteness,
courtesy
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 In an organisation, communication can be internal (the target audience is within the organisation,
i.e., employees, managers and departments) or external (the target audience is outside the
organisation, i.e., customers, suppliers, dealers and distributors).
 Based on the purpose, business communication can be divided into the following types: formal or
informal communication.
 Based on the channels used, communication is classified into the following categories: verbal
(Interpersonal communication or public speaking) or nonverbal communication and written or
visual communication.
 Communication barriers are obstacles that hamper or distort the intended meaning of the message.
These can be Organisational barriers, Personal barriers and other barriers.
 Measures should be undertaken to overcome communication barriers, if any, in an organisation
such as setting a clear and meaningful purpose of communication, selecting an appropriate channel
of communication and building trust by giving response and value to the sender.
1.5 GLOSSARY
 Selective listening: A practice of listening only to what is desired.

 Selective retention: A psychological process where a person retains only that part of the message
that is close to his/her interests, values and beliefs and leaves the undesirable one.
 Slang words: Non-standard words and phrases used in informal communication.
1.6 CASE STUDY: LACK OF COMMUNICATION LEADING TO MISUNDERSTANDING

AT WORK
Case Objective
The case study explains the impact of lack of communication in an organisation.
Mr. Anuj Sharma works as a Senior Sales Executive at Ubica Insurance Group, Mumbai Branch. He is a
dedicated and hardworking employee. A few days back, his manager, Mr. Batra, asked him to meet two
of the organisation’s most important clients—Mr. Govind and Mr. Joy. Meeting these two clients was
very important for Anuj on that particular day as both the clients were leaving the country the next day
for 2-3 weeks.
As Mr. Govind’s office was near Ubica Insurance Group, Anuj decided to meet him first. When Anuj
reached Mr. Govind’s office, he found that Mr. Govind had gone for the inspection of his factory. Mr.
Govind returned after two hours and held a meeting with Anuj. Although Anuj tried to close the
meeting as soon as possible, the meeting took much longer than expected. As a result, Anuj got late
for the meeting with the second client. Anuj was almost two hours late for the appointment with
Mr. Joy.
When Anuj reached Mr. Joy’s office, the receptionist told him that Mr. Joy had left the office after waiting
for him for so long as he had to catch a flight. Anuj tried to call Mr. Joy but his phone was switched off.
Anuj had no other option but to return to his office and report to Mr. Batra. In meanwhile, Mr. Joy, before
leaving the office, informed Mr. Batra that Anuj did not come to meet him. Hearing this, Mr. Batra was
very furious and he simply refused to listen to any explanation given by Anuj. Ultimately, Anuj decided
to leave Ubica Insurance Group. A lack of communication led to the loss of a dedicated employee by the
organisation.
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Questions
1. Do you think there was a personal barrier to communication, which led to such communication
gap?
(Hint: No, it was an organisational barrier to communication.)
2. How could Anuj have avoided missing the meeting with Mr. Joy?
(Hint: By having proper communication regarding the meeting schedules with both clients in
advance.)
3. Who were Anuj’s organisation’s most important clients?
(Hint: Two of the organisation’s most important clients were Mr. Govind and Mr. Joy.)
4. Was Mr. Batra’s reaction justified?
(Hint: No, he should have listened to Anuj.)
5. What was Anuj’s fault in the entire case?
(Hint: Anuj did not take prior appointments and did not inform regarding meeting delays.)
1.7 SELF-ASSESSMENT QUESTIONS
A. Essay Type Questions

1. Discuss the concept and importance of communication.
2. Explain various types of business communication.
3. Describe the process of communication.
4. Differentiate between verbal and non-verbal communication.
5. Explain how to address the barriers to communication.
1.8 ANSWERS AND HINTS FOR SELF-ASSESSMENT QUESTIONS
A. Hints for Essay Type Questions

1. Communication can be described as a process of expressing and transmitting ideas, thoughts,
opinions or beliefs among individuals, either verbally or nonverbally. In other words, communication
is a process that involves transferring information from one party to another. Refer to Section
Concept of Communication
2. Communication can happen based on the target audience, the purpose of communication and
communication channels used. Refer to Section Concept of Communication
3. Communication follows a cyclic pattern for the delivery of a message, fact, thought, or idea.
Communication is a process that involves at least two people: sender and receiver. And, the purpose
of communication is achieved only when the receiver decodes the message and understands it the
way the sender wanted him to. There are six elements that make communication successful and
effective. Refer to Section Concept of Communication
14
4. Verbal communication involves the use of sounds, words and language. Effective verbal
communication is an integral part of any business. It is broadly classified into two types, which
are interpersonal communication and public speaking. Non-verbal communication is a type of
communication that involves the use of signs and symbols. Non-verbal communication does not
use words or sounds. Refer to Section Concept of Communication
5. Barriers to business communication hamper the smooth functioning of organisational activities.
Therefore, these barriers should be overcome at the earliest. Refer to Section Concept of
Communication
@ 1.9 POST-UNIT READING MATERIAL
 https://www.ncsl.org/documents/NLSSA/Communication_NLSSA_2011.pdf
 https://smallbusiness.chron.com/types-business-communications-697.html
1.10 TOPICS FOR DISCUSSION FORUMS
 Discuss the significance of communication for an organisation.
15
UNIT
02 Oral and Non-Verbal Communication
Names of Sub-Units
Introduction to Oral Communication, Public Speaking, Non-verbal Communication, Business

Etiquettes
Overview
This unit begins with an explanation of oral communication and public speaking. The unit then
discusses the meaning and significance of non-verbal communication. The last section of this unit
deals with the meaning and importance of business etiquettes.
Learning Objectives

 Explain the meaning of oral communication
 Discuss the meaning of public speaking and associated fear
 Describe the meaning of non-verbal communication
 Examine the significance of business etiquettes
Learning Outcomes

 Justify the significance of oral communication
 Help people to deal with their fear of public speaking
 Evaluate the concept of non-verbal communication and business etiquettes
JGI JAIN
 https://www.manage.gov.in/studymaterial/ec.pdf
2.1 INTRODUCTION
Oral communication is the most natural form of communication. A child learns to speak much before
he learns to write. It is the most widely used means of communication and plays a very important
role in maintaining good relations whether it is between two persons or amongst many people.
Oral communication has its importance in families, between friends, in organisations and almost
everywhere. Ineffective oral communication or miscommunication can hamper relations and hinder
growth. Oral communication can take the form of speeches, discussions, debates, face-to-face talk and
telephonic conversations and can be either formal or informal. One important principle to be followed or
remembered is the KISS Principle, i.e., Keep it Short and Simple. This is to make the oral communication
more effective and easier for the receiver to understand and convey it further down the line as and
when required.
Communication is the process of sending and receiving messages that enables people to exchange ideas
and share knowledge and skills. Although, communication is generally identified as concerning only
speech, it is actually composed of two dimensions— verbal and non-verbal. Non-verbal communication
plays an important role in our day-to-day communication. Experts believe that more than 90 per cent
of all the communication, which an individual makes in his/her daily life in order to share or gain
information, is supported through body language. Non-verbal communication is the process of sending
and receiving messages through means other than words, such as facial expressions, gestures, change
in tone of voice, etc. Therefore, it becomes important that in order to communicate effectively, one needs
to have a clear understanding of the concept of non-verbal communication. The understanding of
appropriate use of non-verbal communication would enable an individual to clearly communicate with
others and avoid misunderstandings.
The concept of non-verbal communication starts early in an individual’s life shortly after birth and
is practised and refined throughout his/her life. Much like verbal communication, children learn to
communicate non-verbally by observing and imitating adults. Children are generally more adept at
reading non-verbal cues than adults owing to their limited verbal skills. As children grow, non-verbal
channels of communication and verbal communication co-exist in their total communication process.
Another important aspect of non-verbal communication is that it forms an important basis for
people’s opinions of one another. An individual’s opinion of another is based on the words he/she
hears combined with the signals received through body language. While individuals sometimes tend
to use non-verbal communication consciously to generate and share particular meanings, it should be
noted that non-verbal communication is not the same as verbal communication which is “an agreed-
upon rule-governed system of symbols.” When observed closely, non-verbal communication is mostly
spontaneous, unintentional, and does not follow any formalised symbolic rule system.
2.2 INTRODUCTION TO ORAL COMMUNICATION

When communication between individuals occurs orally, it is called oral communication. Oral
communication has the same basic objective as any communication: to express and transmit ideas,
thoughts, opinions, or beliefs among individuals. In oral communication people use verbal and non-
verbal messages to create meaning. The main purpose of oral communication is to inform, persuade,
20
UNIT 02: Oral and Non-Verbal Communication JGI JAIN
motivate or entertain. Oral communication is better at holding the audience’s attention and maintaining
their interest. Oral communication can be either formal or informal. Formal oral communication
includes classroom lectures, speeches, workshops, one-on-one briefing and meeting presentations. This
type of communication flows in horizontal, vertical or diagonal directions. The message conveyed is
accurate and the purpose is generally to persuade, inform or motivate.
Informal oral communication includes casual phone or dinner table conversations. This type of oral
communication flows in every possible direction and does not have to be authentic or carry a specific
purpose. Oral communication requires not only an ability to speak articulately and effectively, but also
good listening skills. Oral communication has various advantages over other forms of communication
which will be discussed in the next section. It has a few limitations as well, which will also be discussed
later. Oral communication has many advantages as follows:
 Saves paper: In today’s scenario saving paper has become an important issue. And oral
communication can definitely help us to do the same.
 Saves time: Considerable amount of precious time is lost in writing out a message and then sending
it to the receiver to read. Oral communication can help us save our precious time.
 Savesmoney: Time saved is money saved for an organisation, which can be used for more constructive
and productive work. Also, the money spent on stationery can be cut down considerably.
 More powerful: Oral messages are much more powerful as they can help people to be more
persuasive. When we communicate orally, we can build and maintain better relations with our
colleagues and others working in the organisation and with our customers and suppliers. Oral
communication adds a personal touch and therefore develops better interpersonal relationships.
 Conveys a clearer meaning: Our voice modulation, i.e., the tone, pitch and loudness of the voice,
can help convey messages more clearly. When communication is oral, immediate response and
reaction are clear which cuts down on miscommunication in the organisation. This in turn helps
the organisation reach a conclusion faster and more efficiently.
Oral communication has certain limitations also, which are:
 Not for lengthy messages: Too lengthy oral messages may turn out to be boring and thereby the
listeners may lose interest and may in turn miss out on vital points. Also remembering all that was
said is difficult for the speaker as well as for the listeners.
 No legal validity: Until, a spoken message is recorded, it cannot be legally valid.
 May create misunderstanding: An oral message can lead to misunderstanding if the speaker has
not organised his thoughts and words carefully. Although oral communication can have room
for clarifications later on, a lot of precious time is lost in the process. Sometimes this can lead to
disastrous effects in business. Words once uttered cannot be erased. Therefore, we need to be very
careful in our choice of words.
 Constrained by various barriers: Since the process of communication is not complete by speaking
alone, the understanding of the oral message is equally important. And understanding an oral
message is definitely constrained by a lot many barriers like noise, language, accent, etc.
How is it that some people can stir the minds of the masses and motivate them to follow? It is all in the
spoken word. B. Jonson has rightly said, Talking and eloquence are not the same; to speak and to speak
well are two different things. If you are familiar with the famous speech of Antony in Julius Caesar,
you would be able to recall that his speech was a masterpiece of oratory and full of rhetoric devices. He
was able to accomplish his secret purpose of inciting the mob against the murderers of Julius Caesar.
Similarly, there have been many famous speeches which have motivated people. The key to success
21
JGI JAIN
and fame of many political leaders, businessmen, salespersons, etc. lies in their capability to deliver an
effective speech.
A good speech has the following prerequisites:
 Clarity: The foremost requisite of a good speech is clarity. The speaker should have both clarity of
thought and clarity of expression. His language should be clear, and grammatically correct.
 Conciseness: A good speech is one that does not go on and on. It should neither be too brief nor
too long. Ideally, a speech should not be more than fifteen to twenty minutes. It depends on the
requirement and the speaker should adhere to the given time slot.
 Informative: The audience would enjoy a speech that adds value to their knowledge. If the speaker
is just beating around the bush, probably the audience would stop listening to him.
 Informal: A speech need not be very formal unless of course the situation demands this. A personal
touch should be maintained because unless a rapport is established between the speaker and the
audience, the purpose is not achieved.
 Interesting: A good speech conveys concrete facts rather than abstract or vague ones.
2.2.1 Public Speaking

A good speaker is earnest. A speech cannot be effective if not prepared properly. A speaker needs to
do some homework, as a speech cannot be cooked up, just a few minutes before its delivery. However,
well-informed a speaker may be, he needs to collect and organise his thoughts properly. The next step
is the delivery of the speech. The opening of the speech should be able to arouse the interest of the
audience. Well begun is half done! Opening with a quotation can be very effective. The right kind of voice
modulation is very essential for the speech to be effective. You may have written a very good speech but
if your modulation is not effective, the entire effort is futile. Eye contact is another important factor
to make your speech effective. The body language of the speaker is also important. The ending of the
speech should also be impressive. The speaker should summarise and outline briefly the main points.
And do not forget to compliment the audience for their patience. Closing with a fitting verse or biblical
quotation also can add to the effectiveness of the speech.
Glossophobia is the extreme fear of public speaking. (Glossophobia comes from Greek glōssa, meaning
tongue, and phobos, meaning fear or dread). Symptoms of glossophobia include intense anxiety before
or just at the thought of having to verbally communicate with any group, avoidance of an event where
the focus of the group’s attention is on the individual, and physical symptoms like rapid heart rate,
nausea or sweating in such circumstances. If glossophobia is extreme, it can cause the individual to
miss out on many academic, social, and career opportunities. Thus overcoming it is important and can
be done by the following methods:
 Psychotherapy: A therapist can help identify the root cause of anxiety and help overcome
glossophobia through cognitive behavioural therapy. The therapist can teach the affected individual
to help identify and deal with any negative thoughts. It helps understand that all people make
mistakes or have omissions when speaking in public and that is alright.
 Medications: Several medications are used to treat the anxiety related to glossophobia if therapy
doesn’t work. For example, Beta-blockers and antidepressants are helpful in controlling the physical
symptoms of glossophobia.
 Other strategies: These can be used on their own or in combination with the above-mentioned
treatments. For example, there are public speaking workshops for people who have glossophobia.
22
Preparing your material thoroughly and rehearsing it often before the actual presentation also
helps. Another helpful method is to practice before small groups and then as confidence builds up,
graduate to larger audiences.
2.3 NON-VERBAL COMMUNICATION

Samovar et al define non-verbal communication as follows:
Non-verbal communication involves those non-verbal stimuli in a communication setting that are
generated by both the source (speaker) and his/her use of the environment and that have potential
message value for the source or receiver (listener).
Non-verbal communication is the process of transferring information without using words— verbal or
written. To further explain the concept of nonverbal communication, let us distinguish between vocal
and verbal aspects of communication. Verbal and non-verbal communication both include vocal and
non-vocal elements. For example, a vocal element of verbal communication involves the use of spoken
words such as “Please look here”.
On the other hand, vocal elements of non-verbal communication consist of various sounds but do not
include spoken words such as, speaking short non-lexical sounds, rate, volume and pitch. Non-vocal
elements of verbal communication include the use of unspoken symbols to send messages; for example,
writing and sign language are non-vocal examples of verbal communication and are not considered
non-verbal communication. However, non-vocal elements of non-verbal communication include body
language such as gestures, facial expressions, and eye contact. Table 1 shows the relationship between
vocal, non-vocal, verbal, and non-verbal parts of communication.
Table 1: Relationship between Vocal, Non-vocal, Verbal,

and Non-verbal Parts of Communication
Verbal Communication Non-verbal Communication
Vocal Spoken words Paralanguage (pitch, volume, speaking rate, etc.)
Non-vocal Writing, sign language Body language (gestures, facial expressions, eye contact, etc.)
Source: Adapted from Owen Hargie, Skilled Interpersonal Interaction: Research, Theory, and Practice (London: Routledge, 2011), 45.
Non-verbal communication has a distinct evolutionary history compared to verbal communication.

Non-verbal communication is primarily based on physical aspects while verbal communication is
primarily based on cultural aspects. Let us discuss the characteristics of non-verbal communication for
a better understanding of the concept.
Non-verbal communication has a development history that is distinct from that of verbal
communication. Non-verbal communication developed primarily because of the need of humans to
effectively communicate their emotions, fears, and desires with each other in order to survive. This is
the reason non-verbal communication has some commonality throughout cultures like similar facial
expressions for happiness, anger, fear and disgust. As survival became a lesser driving force, some of
our non-verbal communication abilities, like our sense of smell, became less sharp, while other abilities
like paralanguage developed alongside verbal complexity. Non-verbal communication may add, replace,
contradict or regulate the meaning of the spoken word. Non-verbal communication functions to supply
significant information, especially in cases where emotional and interpersonal exchange is taking place.
23
JGI JAIN
Figure 1 shows the various functions of non-verbal communication:
Reinforce
Verbal
Regulate Substitute
Communication
Contradict
Figure 1: Functions of Non-verbal Communication

As depicted in Figure 1, non-verbal communication may modify the meaning of verbal communication.
It may:
 Reinforce by adding to the meaning of the spoken word; for example, patting on the back while
giving praise.
 Substitute by replacing words in a communication; for example, a nod in place of a ‘yes’.
 Contradict by altering the meaning of a sentence; for example, sarcastic tone to change the meaning
of the spoken word.
 Regulate by supporting or discouraging an interaction; for example, nodding to encourage someone
to go ahead with their speech. Non-verbal messages which control verbal communication are called
regulators.
Figure 2 shows the various features of non-verbal communication:
Less
Intentional
Multiple More
Medium Believable
Non-Verbal
Communication
Fast Continuous
Complex
Figure 2: Features of Non-verbal Communication
24
Let us discuss these distinguishing features of non-verbal communication as follows:

 Less intentional: A distinguishing feature of non-verbal communication is that unlike in verbal
communication where the user is always conscious of the message being conveyed, in non-verbal
communication, the user may either be aware or unaware of the information he/she is sharing.
The reason for this is that non-verbal communication developed because humans needed to devise
a language to instantly communicate their emotions, fears, and desires with each other in order to
survive. Consequently, a lot of non-verbal cues are intrinsic and cannot be controlled by the user.
For example, a person may involuntarily clench his fists when angry, or blush when embarrassed.
 More believable: Non-verbal communication can be considered a more credible source of
communication by some as it is less under the control of the user. The involuntary nature of
non-verbal communication makes it difficult to fake and sometimes it can betray the user’s true
intentions. Variation from a person’s regular patterns of speech and behaviour might give us a hint
that the verbal signals being sent may not be the complete picture.
 Continuous: Non-verbal communication is continuous in the sense that it is always occurring, as
one is constantly communicating through non-verbal behaviours. Because of this fluid nature, it
can be hard to determine where one non-verbal message stops and another starts. On the contrary,
verbal communication is always exact.
 Complex: Another characteristic of non-verbal communication in which it differs from verbal
communication is that its interpretation is more complex. It depends on both the user’s and receiver’s
cultural background and past experiences. Also, the meanings of some gestures and expressions are
ambiguous and can change depending on the context. Unlike words that can be easily identified and
isolated, non-verbal cues can easily be missed and sometimes change depending on the context.
Non-verbal cues can be perceived and interpreted, but the interpretation is not infallible since it
has no grammar and syntax. But the skill of decoding non-verbal cues can be learned and improved
upon as can the skill of understanding the nonverbal behaviour of people from other cultures.
 Fast: Non-verbal communication is faster than verbal communication. Our communication through
non-verbal means is immediate. This is because, as described earlier, a lot of non-verbal cues are
innate. Even in terms of intentional non-verbal communication, the reaction is much faster than
verbal communication.
 Multiple mediums: Non-verbal communication can be conveyed through more than one medium
simultaneously. For example, a child may laugh and clap his hands, i.e., use more than one sense
in conjunction to indicate delight. The interpretation of non-verbal communication is also through
multiple senses as it involves using a variety of cues, for example, gestures and facial expressions, to
make a conclusion. The differences between verbal communication and non-verbal communication
are summarised in Table 2:
Table 2: Differences Between Verbal Communication and Non-Verbal Communication
Feature Verbal Communication Non-verbal Communication

Types Oral, written Kinesics, Proxemics, Paralanguage, Time Language, Sign Language
Control Voluntary Both voluntary and innate
Fluidity Structured and exact Highly fluid and continuous
Mode Single medium involved Multiple mediums and senses involved
Complexity Easy to understand More complex, ambiguous
Speed Slower Fast
25
2.3.1 Business Etiquettes

Business relationships are usually difficult to establish and time-consuming to maintain. There are
various factors that could be responsible for the same. For example, cultural differences, language
barriers, disparities in nonverbal communication etc. act as hindrances for effective communication.
The formal settings in workplace are another major factor that may affect business communication.
In a work culture, where employers are mostly concerned about how their employees are representing
the organisation, the importance of adhering to the rules of business etiquette becomes very important.
Expected behaviours and preferred individual actions within society, group, or class are referred to
as business etiquettes. Within a place of business, it involves treating co-workers and employer with
respect and courtesy in a way that creates a pleasant work environment for everyone.
Having excellent business etiquettes requires two things: respecting other colleagues and treating
other employees with courtesy and kindness. Employees should be well aware of delivering a proper
handshake, mastering the art of gifting, travel etiquettes, email and telephonic communications etc. for
the best behaviour in any business situation.
It is essential that a worker, besides acquiring the domain knowledge and skills, develops good etiquette
on the job and navigate the diverse and complex business environment successfully. He/she should
take care of things such as keeping conversations polite, to mind his/her manners at meetings and
meals etc. A person should learn how to behave gracefully during tense discussions, improve his/her
communication skills and overcome work-related challenges with poise. Some of the behaviours that
lead to good business etiquettes are as follows:
 Making a great first impression
 Meeting and greeting with confidence and ease
 Proving to be a good organisational representative
 Practising proper online etiquette
 Adapting to the changing rules of etiquette
 Dealing with difficult personalities without losing your cool
 Becoming a well-mannered traveller
 Developing good relationships with your peers, staff and superiors
 Giving compliments and offering criticism
 Respecting physical, racial, ethnic and gender differences at work
 Developing cubicle courtesy
 Avoiding conversational faux pas
 Oral communication has the same basic objective as any communication: to express and transmit
ideas, thoughts, opinions, or beliefs among individuals.
 The main purpose of oral communication is to inform, persuade, motivate or entertain.
 Oral communication can be formal or informal.
 Oral communication is limited by the fact that it is not for lengthy messages, has no legal validity
and is constrained by various barriers.
26
 Two-sided oral communication occurs when the receiver provides feedback to the sender. Two-sided
oral communication can be vertical or horizontal.
 The five essential characteristics of an effective speech are clarity and conciseness and it is
informative, informal and interesting.
 Glossophobia is the extreme fear of public speaking which can be overcome by psychotherapy,
medications and other strategies like practicing and rehearsing.
 Non-verbal communication can be defined as any meaning shared through bodily movements and
sounds other than words.
 Non-verbal communication may reinforce, substitute, contradict or regulate the meaning of the
spoken word.
 A major part of non-verbal communication is enacted at an unconscious level while verbal
communication can be both conscious and unconscious.
 Non-verbal communication is more believable since it is less under the control of the user.
 Verbal communication uses one channel while non-verbal communication occurs through multiple
channels simultaneously.
 Non-verbal communication is ambiguous and more complex to decode.
 Non-verbal communication is fast.
 Some non-verbal communication is considered universal and recognisable across cultures, while
verbal communication is exclusive to particular languages.
 Non-verbal communication functions to supply significant information, especially in cases where
emotional and interpersonal exchange is taking place.
2.5 GLOSSARY
 Accent: The distinctive way to pronounce words in a language by a speaker or group of speakers.
 Cognitive: Relating to the mental process of understanding and acquiring knowledge.
 Rhetoric: The art of articulate and persuasive speaking.
2.6 CASE STUDY: THE DEBATE THAT CHANGED POLITICS
Case Objective
The case study explains how powerful communication can change the entire situation.
Source: https://theprint.in/pageturner/excerpt/nixon-and-kennedy-agreed-on-us-helping-india-win-race-against-china/367296/
27
JGI JAIN
Kennedy was a relatively unknown senator before the first televised debate between Richard Nixon and
John F Kennedy. He did not have much working to his advantage; he was young and a Catholic. Nixon,
by contrast, had spent nearly eight years as the country’s Vice President after an illustrious career
in the Congress and had immense foreign policy experience. It was not the content that decided the
fate during the debate; both candidates were skillful and presented similar agendas. But Nixon, who
was sallow and underweight (owing to a recent hospitalisation), appeared sickly and sweaty, while the
photogenic Kennedy appeared calm and confident. Kennedy nailed non-verbal communication during
the debate, making eye contact with the camera as he answered each question. Nixon, on the other
hand, struggled to send positive non-verbal cues. He looked to the side to address the reporters, which
was perceived as avoiding eye contact with the public.
Since most Americans owned televisions by then, the majority saw the debate on TV and were influenced
as much by Kennedy’s personality as the agenda he presented. The ones who listened only on radio
thought Nixon had won but they were in minority. By the end of the debate, Kennedy was a star. The
Kennedy team itself hadn’t anticipated the reaction. They realised the debate was a game changer when
they saw the crowds for his campaign were much larger than they had ever been. Although Nixon
performed much better in the subsequent debates and even appeared healthier, the damage had been
done. The 60-minute duel between the handsome Irish-American senator and Vice President Richard
Nixon fundamentally altered political campaigns and proved the fact that appearances mattered.
Television had not played a role in politics prior to this.
This debate proved that not just the content but how you presented it mattered. What you looked and
sounded like and whether you had the ability to make a connection with the audience were all important
factors in winning. This case highlights the importance of non-verbal communication: appearance, eye
contact, stance and making a connection with your audience, in order to succeed in an endeavour. Had
there not been a serious advantage to Kennedy in terms of the message he sent across non-verbally, who
knows if he would have won the presidential election.
Source: Adapted from Kayla Webley for Time magazine “How the Nixon-Kennedy Debate Changed the World” and The Kennedy-Nixon
Debates (www.history.com/topics/us-presidents/kennedy-nixon-debates)
Questions
1. Explain the factors that worked to the advantage of John F Kennedy.
(Hint: Non-verbal messages conveyed through television.)
2. The case focuses on which non-verbal features?
(Hint: Appearance, eye contact, stance and making a connection with your audience.)
3. Why did Nixon struggled to send positive non-verbal cues?
(Hint: Nixon was sallow and underweight (owing to a recent hospitalisation) and, appeared sickly
and sweaty)
4. How did the Nixon-Kennedy debate prove that appearances mattered?
(Hint: The 60-minute duel between the handsome Irish-American senator and Vice President Richard
Nixon fundamentally altered political campaigns and proved the fact that appearances mattered.)
5. Why were most Americans influenced as much by Kennedy’s personality as the agenda he presented?
(Hint: Since most Americans owned televisions by then, the majority saw the debate on TV and were
influenced as much by Kennedy’s personality as the agenda he presented.)
28

1. What is verbal communication?
2. Explain the meaning of public speaking.
3. Explain the meaning of non-verbal communication.
4. List a few common acceptable business etiquettes.

1. When communication between individuals occurs orally, it is called oral communication. Oral
communication has the same basic objective as any communication: to express and transmit ideas,
thoughts, opinions, or beliefs among individuals. In oral communication people use verbal and
non-verbal messages to create meaning. The main purpose of oral communication is to inform,
persuade, motivate or entertain. Oral communication is better at holding the audience’s attention
and maintaining their interest. Refer to Section Introduction to Oral Communication
2. A speech cannot be effective, if not prepared properly. A speaker needs to do some homework, as a
speech cannot be cooked up, just a few minutes before its delivery. However, well-informed a speaker
may be, he needs to collect and organise his thoughts properly. The next step is the delivery of the
speech. The opening of the speech should be able to arouse the interest of the audience. Well begun
is half done! Opening with a quotation can be very effective. The right kind of voice modulation is
very essential for the speech to be effective. You may have written a very good speech but if your
modulation is not effective, the entire effort is futile. Eye contact is another important factor to
make your speech effective. Refer to Section Introduction to Oral Communication
3. Non-verbal communication is the process of transferring information without using words— verbal
or written. Both verbal and non-verbal communication include vocal and non-vocal elements. Refer
to Section Non-Verbal Communication
4. Some of the behaviours that lead to good business etiquettes are as follows:
 Making a great first impression
 Meeting and greeting with confidence and ease
 Proving to be a good organisational representative
 Practising proper online etiquette
Refer to Section Non-Verbal Communication
 https://www.verywellmind.com/types-of-nonverbal-communication-2795397
 https://www.thebalancecareers.com/nonverbal-communication-skills-2059693
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JGI JAIN
 Discuss with your friends and observe how people have been communicating using non-verbal
communication.
30
UNIT
03 Listening & Reading Skills
Names of Sub-Units
Listening, Importance of Listening, Need for Listening, Types of Listening, Active Listening, Empathic
Listening, Developing Listening Skills, Characteristics of a Good Listener, Listening and Understanding,
Reading, Objectives of Reading, Reading as a Skill, Types of Reading
Overview
The unit begins by explaining the meaning and significance of listening skills, followed by explaining
the meaning of reading skills and their types.
Learning Objectives

 Explain the meaning of listening
 Describe the importance, needs, and types of listening
 Discuss how to develop listening skills
 Examine the characteristics of a good listener
 Explain the meaning of reading
Learning Outcomes

 Evaluate the listening and reading skills of people
 Advice on how people can promote active listening
JGI JAIN
DEEMED-TO-BE UN IV E RSI TY
3.1 INTRODUCTION
While spoken language is a natural, evolutionary form of human communication, written language is
a human invention (Pinker & Bloom, 1990). Spoken language is over 6 million years old and reading is a
relatively newer means of communication (only 6000 years old). Reading can be defined as a cognitive
process where one identifies and interprets the written text to gain meaning. The information that the
reader derives from the text is shaped by the reader’s past experiences, prior knowledge and culture.
Reading requires continuous training, development and improvement. In addition, reading requires
attention, memory, motivation, imagination and critical analysis. Reading is a means of acquiring
information and ideas and helps the readers focus their attention and direct the information they have
acquired towards a specific goal. A well-read individual is regarded highly in society. Reading books is
brain stimulating activity that help reduce the rate of decline in memory and other mental capacities.
Reading for pleasure has been linked to the increased the overall academic progress of students.
Reading helps further the communication skills of an individual by enhancing his vocabulary, fluency
and comprehension. As a student, in business or even life in general, reading is the means to acquire
most of the relevant information. Thus, the understanding and development of this skill are imperative
to success.
3.2 LISTENING
What good would a verbal message do if there were no one to listen? Often when there is a conflict or
a misunderstanding, the reason is a communication gap. That means the communication process is
not complete if there is either no speaker or no listener. Although listening is an important part of the
communication process, sometimes people listen less and speak more. But we now realise the importance
of listening in all business situations. To maintain good relations with all inside our organisation and
our clients and dealers, we need to learn to be good listeners. A good listener is always a good speaker.
This proverb holds good because we need to understand that when we listen, we gather information,
and only a well-informed person can himself be a good speaker.
Poor listening skills can lead to many problems in our professional life and in our personal life. Often, we
hear youngsters talking about the generation gap between themselves and their elders, but frankly it is
only a communication gap that causes any conflict. We all need to listen empathically to build healthy
human relations in our personal and professional life. As a manager, one needs to enhance one’s listening
skills as one needs to listen to and address the queries of subordinates. No salesperson can ever satisfy
a customer unless and until he listens to the customer’s requirement or even a complaint. Listening also
has a positive influence. It may be surprising, but by listening effectively to people’s talk, we help them
gain confidence, thereby increasing their productivity. In addition, a manager can gain trust, respect
and loyalty of the team if he is a good listener.
3.2.1 Importance of Listening

Listening is a skill that is important for all people. However, it is usually taken for granted. Most people
only hear what is being said, and hearing is different from listening. Listening requires conscious effort
to hear what people are saying and comprehend it. Therefore, listening enhances a person’s ability to
understand and communicate better.
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UNIT 03: Listening & Reading Skills JGI JAIN
3.2.2 Need for Listening

Listening is an inseparable and vital part of communicating. Listening is important due to the following
reasons:
 It helps in learning and understanding things better
 Assists in maintaining a social and professional environment
 It helps the listeners become better at socialising
 It helps the listener become a better sympathiser with friends and family
 It helps build stronger relationships by making people feel valued
 Assists in developing and improving problem solving skills
 It helps in absorbing information better
3.2.3 Types of Listening

Listening can be of four types namely passive listening, active listening, selective listening and emphatic
listening.
Active Listening
The most desirable of all types is active listening, or attentive listening. Here the listener is actively and
attentively concentrating on the words being spoken. This demonstrates the interest of the listener and
thereby motivates and encourages the speaker to continue speaking. This also shows regard for the
speaker, and the listener is in a better position to comprehend the message and remember and recall
the same in the future. This type of listening helps the listener decode the message properly, and makes
it easy for the speaker to deliver the message in a meaningful manner.
Empathic Listening
Listening that involves eyes and heart along with ears is emphatic listening. This listening is done so
intensively that the speaker is well understood, both intellectually and emotionally. But there is a risk
here as well; the listener is vulnerable to the speaker’s influence.
Passive Listening
In this case, the listener is probably pretending to listen and is otherwise indifferent to what is being
said. Here we can say that only hearing is taking place. Since listening is passive, the message is not
listened to properly, and cannot be ever recalled at any point in the future. The listener may nod and
smile at all the right places, but actually, he does not listen anything that is said because often the
listening process stops at the hearing. There is no effort to process further or comprehend the message.
Selective Listening
When listening is done according to one’s whims and wishes, the listener selects the part that he is
desirous of listening and ignores the rest. Selective listening takes place when the listener is not focused
and his mind keeps wandering. The reasons can be many – maybe the listener is not in a condition
to focus or concentrate as his mind is on other issues or elsewhere, or the listener may not be able to
35
JGI JAIN
concentrate, or consider the speaker to be poorly informed on the subject. Sometimes selective listening
can be embarrassing if a sudden opinion is asked, and the listener has been tuning in and out.
3.2.4 Developing Listening Skills

An important precondition is that the person must want to improve his listening skills. It must be
remembered that hearing influences people more than reading. Have you ever noticed that small kids
remember stories told by their grandmothers even after years of hearing them? As grown-ups, people
may find it hard to pay attention because they consider it to be work which they want to avoid.
Note: Hearing is through ears, but listening is through the mind.
The actual use of communication skills should be as follows: writing 9%, reading 16%, speaking 30%
and listening 45%, but ironically it is not. It is, in fact, as follows: reading 52%, writing 30%, speaking
10% and listening 8%. In today’s business scenario, where no business can thrive without effective
communication, can we afford to overlook this aspect? There are some - accepted commandments of
listening, following which it may be possible to remove the barriers that come in the way of effective
listening and hinder the communication process.
3.2.5 Characteristics of a Good Listener

The ten commandments of listening can help one become an effective listener. These Ten Commandments
are explained as follows:
1. Stop talking: God has given us two ears and one mouth, so why not use them in that order. So, talk
less and listen more. It so happens that even if we are listening, we are thinking about what to say
next rather than listening to the speaker. So, the first rule says to stop talking and start listening.
2. Put the speaker at ease: When we listen actively, we help put the speaker at ease, and he can deliver
more effectively and meaningfully. And if the message gets across effectively, we have better inputs
to work with.
3. Show that you want to listen: If the listener can convince the speaker that the listener is attentively
listening to what the speaker is speaking, the listener performs better. Nobody wishes to talk to a
bored audience.
4. Remove distractions: Any distractions, such as ringing mobiles, continuous shuffling of papers,
outside noise, etc. can hinder the listening process. Therefore, it is imperative to review these.
5. Empathise with the speaker: We need to put ourselves in the speaker’s shoes to understand his
feelings about talking to a disinterested audience. The speaker may not be perfect, but for a true
exchange of information, it is necessary to overlook any shortcomings and create an understanding
environment.
6. Be patient: Every person has his way of delivering a talk. We need to give him enough time to
complete what he wants to say rather than interrupt and disturb his train of thought. So, a listener
needs to be both attentive as well as patient.
7. Hold your temper: Temper impedes communication and angry people never listen to each other.
Instead, they just speak to each other and get angrier. It so happens that anger blocks minds to the
words of others.
8. Avoid arguments and criticisms: Rarely does anyone benefit from discussion and criticism. When
we criticise or argue with a person, he too gets angry. and the conflict goes on, or he would clam up
and refrain from further talk. So, either way, neither of them benefits.
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9. Ask questions: When we ask questions, we display our interest in the talk and regard for the speaker.
This not only helps the listener listen effectively but also helps the speaker deliver his message
effectively.
10. Stop talking: The first commandment was ‘stop talking’ as we need first to stop talking to listen to a
speaker and the last commandment again is the same as all the other commandments depend on it.
3.3 LISTENING AND UNDERSTANDING

Good communication is essential for successful relationships, whether personal or professional. However,
most times people listen to another person to reply rather than listen to understand. A listener should
listen instead of thinking of responding to the other person. For listening that leads to understanding, a
listener should adopt the following practices:
 Pay attention: A listener should always look at the speaker when they are talking to them. The
listener must also take note of the speaker’s eye contact and body language.
 Listen with your body: A listener should turn towards the speaker and make them feel listened to
an important part of active listening is making eye contact, smiling, nodding, and responding with
replies such as “Really?”, “Go on”, etc. wherever required.
 Do not interrupt: It is considered rude and inappropriate to interrupt the speaker and talking on top
of them as it makes the speaker feel like they are not being heard. The listener should first listen to
the whole speech of the speaker and wait for asking questions or suggestions.
 Repeat what they said: Before adding his own opinions, the listener should summarise what was
said by the speaker.
 Respond to what they said: A listener should always remain respectful and honest. Respond to the
speaker’s query politely and respectfuly.
3.4 READING
At a basic level, reading is defined as decoding a series of written symbols and getting meaning from
them. When we read, we look at written symbols and decode them into words, sentences and paragraphs.
The primary purpose that reading serves is to let the reader receive information by understanding
the text. Thus, reading is a form of communication that is primarily used to receive information. But
reading can also be a communicative process used to share information. This can be explained by the
fact that reading also requires us to pronounce the words that we read (either internally or loudly to
others). Reading is typically an individual activity, but it can also be a group activity when a person
reads aloud for the benefit of other listeners. Reading can, thus, be:
 Silent (when we read internally)
 Aloud (when we read out loud for others to listen)
People mostly perceive reading to be a passive process, which, in a way, is when a reader just reads
the words without paying attention. But it is also an active thinking process because the readers use
their imagination, experiences and prior knowledge to make sense of what they are reading. Several
studies have proved that prior knowledge plays a role in reading comprehension. In addition, it is a
dynamic process in the sense that the readers read and simultaneously re-examine, re-evaluate, recall
and review what they have read before. This is why two readers may construct different meanings even
after reading the same book.
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JGI JAINDEEMED-TO-BE UN IV E RSI TY
Reading is a complex cognitive process, even though it is generally considered to be a simple act involving
a single mental process. According to Gough and Hillinger (1980), reading is an unnatural act, unlike
speaking and listening, which are innate skills. Reading is harder to learn than speaking and requires
decoding written symbols. During reading, our brain is engaged in several activities simultaneously.
The first mental process is that the reader decodes a text to construct meaning by connecting the
information suggested in the text with prior knowledge that the reader has. The second process is the
interaction co-occurring amongst the different elements of reading that results in interpretation of the
text. In reading, decoding of text is done by figuring out the connection between letters and sounds; and
between printed and spoken words. This requires the five elements of the process of reading to work
together. These elements are shown in Figure 1:
Phonemic Awareness
Phonics
Vocabulary
Fluency
Comprehension
Figure 1: Five Elements of Reading

These five elements work together to create the reading experience. Let us discuss them in detail.
1. Phonemic awareness: Phonemes are the smallest units of spoken language. These units then
combine to form syllables and words. For example, the word ‘add’ has two phonemes (a-dd), while
‘and’ has three phonemes (a-n-d). Phonemic awareness refers to the understanding that words are
created from sounds (phonemes) and the ability to recognise and exploit these sounds in spoken
language. Phonemic awareness can be learned and used in several ways, which include:
 Phoneme isolation requires the reader to isolate individual sounds in a word to determine its
meaning.
 Phoneme segmentation requires the reader to break words into their corresponding phonemes
to figure out the new word.
 Phoneme identification requires the reader to identify sounds in words by utilising previous
knowledge of phonemes.
 Phoneme blending requires the reader to link a series of phonemes together to create a word.
2. Phonics: Phonics is the relationship between individual sounds (phonemes) in a spoken language
and letters in that language. Phonics is also the understanding that there is an obvious connection
between phonemes (the sounds of spoken language) and graphemes (the letters that correspond to
these sounds in written language). Without phonics, words are just some arbitrarily drawn lines.
Unless we know the corresponding sounds that have been agreed upon for the symbols, we cannot
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read these lines and make a sense out of them. Thus, learning to connect the individual sounds that
each letter represents and then putting those together in a word is essential to reading. Though
phonics and phonemic awareness both involve the connection between sound and symbols, and
may be confused with each other, they can be distinguished by the fact that phonics involves the
relationship between sounds and written symbols, whereas phonemic awareness involves sounds
in spoken words. Following are the ways to develop knowledge of phonics which can be used in
combination or independently:
 Synthetic phonics: The readers are taught to connect letters to their corresponding phonemes
first and then use these together to create a word.
 Analytic phonics: A word is identified as a whole unit, and then its letter sound connections are
analysed.
 Analogy phonics: Uses familiar parts of words to discover new words.
 Phonics through spelling: Focuses on connecting sounds with letters in a spelling.
3. Vocabulary: Vocabulary is the set of words in a particular language. Vocabulary development is a
continuous process since a reader is constantly adding new words to his/her dictionary. Vocabulary
development is important for beginning reading in the absence of which readers cannot understand
the meaning of the content they are reading unless they understand the meaning of the majority
of words in the text. Vocabulary development is closely connected to comprehension; the more
significant is the reader’s vocabulary, the easier it is to make sense of the text.
There are two primary ways of teaching and learning new vocabulary words:
 The first is direct instruction from a resource offering definitions and pronunciations (for
example, a teacher or a dictionary).
 The second is learning through context clues which could be other words in the text, illustrations
etc. that provide clues to the meaning of a new word.
4. Fluency: Fluency is a reader’s ability to read with speed, accuracy and expression. Fluency is the
ability to read at the same rate as we speak and make sense of the text without having to stop and
decode each word. Fluency is measured through loud reading and silent reading. This is because
even in the case of silent reading, we can evoke in our mind the sounds corresponding to the words
we read. For fluent readers, there is no lag in recognising and comprehending words, they do both
simultaneously. Reading fluency is a critical factor necessary for reading comprehension. A reader
must be able to move quickly enough through a text to develop meaning. If he takes time to decode
each individual word, he cannot create an overall picture in his mind of what the text is saying.
Thus, fluency is intimately tied to comprehension.
Fluency can be taught using two approaches:

 Loud reading, whereby a teacher encourages and guides students to read passages aloud and
provides feedback as they go.
 Independent silent reading, whereby students are encouraged to read silently on their own.
5. Comprehension: Most people have the idea that comprehension is reading, but it is, in fact, an
element of reading. But it is the most important in the sense that comprehension is the main
reason we read. Comprehension is what happens when we use all our skills of reading to read a
text, that is, we derive meaning. Reading comprehension is putting the meaning of isolated words
in context and using past knowledge to develop meaning. Reading comprehension is the most
complex aspect of reading as it involves all the other four elements of reading plus the analytical
skills of the reader brought together so that the reader understands what he/she has been reading.
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JGI JAIN
During comprehension, a reader has to actively think, question, answer and conclude the text. Like
vocabulary, reading comprehension skills develop and improve over time through instruction and
practice.
3.4.1 Objectives of Reading

Four significant objectives of reading are as follows:
 Reading to activate and reinforce other skills: A habit of reading can help the reader put into
practice grammatical structures, new lexical items and elements of pronunciation. Reading also
helps the reader improve his/her grammar, vocabulary, pronunciation, and writing skills.
 Reading to become a better reader: A reading habit helps the person to become a better reader. In
the case of adult language learners who are already well versed in their native language, it is easier
to absorb advanced reading skills in a second language.
 Reading to develop critical thinking skills: Reading skills are important for academics and help
develop critical thinking skills. These skills help the reader understand and alalysethe message in
a better manner, such as writing a business plan, prioritising and making conclusions, drawing
comparisons, making inferences, etc. Reading can help in sharpening all these critical thinking skills.
 Read for enjoyment: Reading helps the reader discover the joy of reading in more than one language.
3.4.2 Reading as a Skill

Various characteristics of reading as a skill are as follows:
 Reading acts as a basic building block for learning and is an important life skill
 Reading helps in improving memory
 Reading helps in improving focusing power
 Reading helps in improving vocabulary and language skills
 Reading helps in strengthening analytical skills
 Reading helps a person gain knowledge about different cultures and societies
 Reading helps in gaining confidence
 Reading helps in reducing stress
3.4.3 Types of Reading

There are different styles depending on the reason for reading and the material and purpose of reading.
People can read for purpose or for pleasure. Intensive and extensive reading refers to two reading styles
that people use, when reading for a purpose and pleasure respectively. The two main types of reading
are as follows:
1. Intensive reading: Intensive reading is done with clear goals in mind. It is reading with a specific
purpose. It involves reading in detail, and increasing one’s knowledge is the primary focus. It involves
total comprehension and is more time-consuming; that is why it works better with shorter texts. It
helps with the retention of information for long periods of time. Examples include reading a news
article, a contract etc. Slow reading is generally used to read intensively.
2. Extensive reading: Extensive reading involves reading for enjoyment. Total comprehension is not
necessary for extensive reading and, it works better with the text that is appealing to the reader. It
40
aids in increasing vocabulary and fluency in a language and, thus, helps improve general reading
skills. Examples include reading a novel, magazine etc. Normal reading, skimming, scanning,
surveying is typically used for extensive reading. Figure 2 shows the different styles of extensive
reading:
Slow
Reading
Normal
Scanning
Reading
Styles of
Extensive
Reading
Surveying Skimming
Figure 2: Different Types of Reading

Slow reading involves voluntarily reducing the rate of reading to facilitate enhanced comprehension or
pleasure from a text. While slow reading can be unintentional due to lack of fluency in reading, slowing
down speed deliberately has been shown to have positive effects. One of the benefits of slow reading is
that it can reduce anxiety and stress. This is because when deliberately reading slowly, you force your
mind to focus on only one thing at that time, making it forget things that might be straining it. Thus, it
can be said to have a calming effect. It can also help to respond to, explore and analyse the text better.
It aids in better absorption and retention of ideas from the text being read. It also helps to grasp deeper
meanings and symbolisms within a text that you are prone to miss if you read fast.
In normal reading, a reader reads the text from beginning to end, without significantly omitting words,
phrases or sentences. The reader studies the text with average reading speed which is 250 words a
minute in case of extensive reading or reading for pleasure; and 75 words a minute in case of intensive
reading or for technical material. Normal reading differs from slow reading because in slow reading,
the reader is required to focus on each word; while in normal reading, the reader might skip unfamiliar
words or just estimate their meaning from the context.
Skimming is the process of speedy reading to gain the gist of a text. It consists of reading the material
quickly from start to finish and taking note of the main points. Skimming is a technique which helps
the reader establishes what the text is about. During skimming, a reader lets his eyes ignore phrases,
sentences or paragraphs that might contain details and selects items that interest him. During skimming,
we generally read the first line of a paragraph and then read speedily the headings, subheadings, words
in italics or boldface to gain knowledge of key words and the text’s central idea. Skimming is a relevant
pre-reading task. For example, we might skim through a newspaper to preview articles for detailed
reading.
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The purpose of surveying is to get a broad, overall essence of an article, chapter or book. It is done by
concentrating on the general aspects and skipping the details, mainly to decide the usefulness of the
text and determine whether it is worth reading more closely. This can be achieved by reading the title,
table of contents, headings, abstracts and summaries. Surveying the text first facilitates reading speed
and improves comprehension if you decide to read the text later. It aids you to decide whether to read
slowly, normally or to skim a text.
During scanning, we speedily go over a section of text to find particular words or phrases. Scanning can
be distinguished from skimming as in scanning; you disregard the majority of the text and focus only
on specific words or phrases. Thus, scanning is a technique used when we look for specific information;
whereas, in skimming, we have little, if any, prior knowledge of the contents. The comprehension gained
through scanning is adequate to complete the relevant task. For example, you can scan through a book
index to find the chapter you want to read.
 To maintain good relations with all inside our organisation and our clients and dealers, it is very
important for us to learn to be good listeners.
 Listening enhances a person’s ability to understand and communicate better.
 Listening can be of four types namely passive listening, active listening, selective listening and
emphatic listening.
 The ten commandments to make listening effective are: stop talking, put the speaker at ease, show
that you want to listen, remove distractions, empathise with the speaker, be patient, hold your
temper, avoid arguments and criticisms, ask questions, and again stop talking.
 Reading can be defined as a cognitive process where one identifies and interprets written text to
gain meaning. The information that the reader derives from the text is shaped by the reader’s past
experiences, prior knowledge and culture.
 People mostly perceive reading to be a passive process, which, in a way, is when a reader just reads
the words without paying attention. But it is also an active thinking process because the readers use
their imagination, experiences and prior knowledge to make sense of what they are reading.
 Reading acts as a fundamental building block for learning and is an important life skill
 Intensive and extensive reading refers to two reading styles that people use, when reading for a
purpose and pleasure respectively.
 Five styles of extensive reading include: slow reading, normal reading, skimming, surveying and
scanning.
3.6 GLOSSARY
 Commandment: A rule to be observed strictly

 Scanning: The ability to find specific information or data as fast as possible
 Skimming: The process of rapidly reading a text or content for getting a rough idea of what it is all
about
 Surveying: The practice of taking a broader look at things, which gives an overall picture and helps
us analyse what its key features are, and how valuable it is
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3.7 CASE STUDY: IMPROVING ON READING ABILITIES
Case Objective
The case study explains how to improve reading skills.
Jane Butler was a JSS teacher of English and Social Studies. She was very eager to attend a training
program for English teachers in Cape Town. She wanted to learn important and necessary methods of
helping her students from Grade 9 so that they are able to read better. It was noticed that the students,
for unknown reasons, were very eager to read their English textbooks with more interest than they
wanted to read their Social Studies textbooks. It made her wonder whether it was because English
textbooks were interesting as they had stories and many other things about people, while Social Studies
talked about facts and figures.
Jane eventually shared her thoughts and her concerns with the experts. There she realised that it was
not only her students who behaved in this manner. Many others did exactly the same and the others too
were concerned. Other teachers in the school too were facing the same problem. So the experts decided
to work on it and to make this a complete session of training. The next day, they had many participants,
including Jane, working on the exercises connected totheir teaching textbooks. During the training,
they made Jane and others go through a number of interesting activities. They were made to read
through the same texts for different purposes with varying speeds and, focus on different aspects of
the passage. This made Jane realise that if she could get her students to actively engage with the text
while going through a number of activities, then they would read other subject textbooks with the same
interest as they would read their English textbooks.
Next day, Jane tried out some of the techniques and exercises she had learned in her class. She found to
her pleasant surprise that the students were very interested and eager to read with interest, and they
slowly began to perform better in Social Studies. This made her realise that no matter what kind of text
we read, we will get the maximum benefit and joy out of it if we read actively.
Source: http://orelt.col.org/module/unit/3-reading-efficiently-sub-skills-reading
Questions
1. Why was Jane worried for her students?
(Hint: Lack of interest in reading.)
2. How did Jane change the interest of her students?
(Hint: By using different strategies and methods while reading.)
3. What was Jane Butler’s initial assumption on why Grade 9 students were very eager to read their
English textbooks with more interest than they wanted to read their Social Studies textbooks?
(Hint: Jane believed that English textbooks were interesting as they had stories and many other
things about people while Social Studies talked about facts and figures.)
4. What does Jane do due to which the students began to perform better in Social Studies also?
(Hint: Jane tried out some of the techniques and exercises she had learned in her class.)
5. What was the main activity that was conducted during the training session that Jane attended?
(Hint: Jane and others were made to go through several interesting activities. They were made
to read through the same texts for different purposes with varying speeds and, at the same time,
focussing on different aspects of the passage.)
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1. Explain the importance of reading.
2. What are different types of reading?
3. What is listening?
4. What are the different types of listening?

1. Reading is defined as decoding a series of written symbols and getting meaning from them. When
we read, we look at written symbols and decode them into words, sentences and paragraphs. The
primary purpose that reading serves is to let the reader receive information by understanding text.
Thus, reading is a form of communication that is primarily used to receive information. But reading
can also be a communicative process used to share information. Refer to Section Reading
2. The two main types of reading are intensive reading and extensive reading. Slow reading is
generally used to read intensively. Normal reading, skimming, scanning, surveying is typically used
for extensive reading. Refer to Section Reading
3. Listening is a skill that is important for all people. However, it is usually taken for granted. Most people
only hear what is being said and hearing is different from listening. Listening requires conscious
effort to hear what people are saying and comprehend it. Thus, listening enhances a person’s ability
to understand and communicate better. Refer to Section Listening
4. Listening can be of four types namely passive listening, active listening, selective listening and
emphatic listening. Refer to Section Listening
 https://harappa.education/harappa-diaries/types-of-listening
 https://www.twinkl.co.in/teaching-wiki/types-of-reading
 Discuss with your friends why reading skills are important for students to succeed in acedemics.
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UNIT
04 Written Communication
Names of Sub-Units
Importance of Written Communication, Types of Written Communication, Memos, Proposals, Letter

Writing, Circulars, Notices, Agenda, Minutes of the Meetings, Report Writing, Resume Writing, Email
Writing and Etiquette.
Overview
The unit begins by explaining the importance of written communication. Next, the unit explains
the types of written communication, including memos, proposals, letter writing, circulars, notices,
agenda, and minutes of the meetings, report writing and resume writing. Towards the end, the unit
explains email writing and related etiquette.
Learning Objectives

 Explain the importance of written communication
 Describe the various types of written communication such as memos, proposals, letter writing,
circulars, notices, agenda, minutes of the meetings, report writing, resume writing and email
writing
JGI JAIN
Learning Outcomes

 Prepare well-drafted letters, memos, notices
 Minimise the errors in written communication
 Write business documents with ease using appropriate style
4.1 INTRODUCTION
Oral communication comes spontaneously to man and written communication requires a lot many
years of hard work, words once said maybe forgotten but written words become permanent. While
oral communication is an important means in a business or an organisation, we cannot take written
communication as an unimportant means. It is as indispensable as oral communication. Written
communication can be in the form of notices, messages, circulars, reports, emails, etc. The characteristics
and the layout of each have been discussed in this unit. It is very important to understand that writing
is an art and it requires a lot of effort. Creativity and excellence in the language used are essentially
necessary for the written communication to be good.
4.2 IMPORTANCE OF WRITTEN COMMUNICATION

Written communication is the sharing of information between individuals or groups by means of
written symbols. The goal of written communication is to present ideas and information coherently.
Good written communication requires sound knowledge of the intent, audience, content, language and
organisation.
In written communication, a message is conveyed in a recorded form. It includes e-mails, articles,
reports, and memos. Written communication can be used to convey information formally or informally.
For example, a notice regarding change in the project schedule on the notice board is an example of
written communication. Written communication lacks an immediate response from the receiver. Thus,
there should be careful selection of words and phrases in the message.
Written communication is one of the primary methods of communication in any organisation. Various
forms of written communication are used internally for business operations routinely including memos,
reports, bulletins, manuals, e-mails, etc. This is because writing has the following advantages:
 On record: Everything can be on record, such as correspondence with clients and dealers, minutes
of important meetings, etc. Just imagine getting an oral appointment letter. Would you not worry
about the profile and the benefits? Since nothing is on record, things could change as per the
employer’s wish. Therefore, written documents provide a permanent record and are beneficial for
future references as well as for formulating policies and deciding targets for the future.
 Legal validity: Written records have legal validity and may be used for building up legal defences in
an organisation.
 Fast and inexpensive: Emails are in fact the most inexpensive and fastest means of communication
when face-to-face communication is not possible.
 Accurate and dependable: Written words are definitely considered to be accurate and more
reliable than oral words, because oral words may later be changed whereas written messages are
permanent. Nobody can go back on their words, provided the words are written.
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UNIT 04: Written Communication JGI JAIN
 Well-formulated: Spoken words can be spontaneous but written words can always be given a
thought, drafted and conveyed carefully in a well-formulated manner. Hence a written message is
more explicit and more specific.
 Assigns responsibility: Everyone in an organisation cannot be told to do everything. For every small
task to be done, responsibility needs to be assigned. And for this purpose, written communication is
obviously the most effective means. Orally conveyed responsibilities may never be taken seriously.
 Lesser chances of misunderstanding: If the language is grammatically correct, there are lesser
chances of any misunderstanding. Of course, incorrect usage of grammar can lead to a bigger
misunderstanding.
 Permit revision: Written words can be erased or revised as per our requirement, of course before
sending the message through.
Written communication does have a few limitations as given below:
 Time consuming: Written communication requires a lot of time. Putting one’s thoughts into words
and formulation of the same is of course time consuming, as proper structuring is required.
 Money consuming: A large amount of resources are wasted in an organisation on stationery and
storage of files and records. Of course, computers have helped us save or rather just cut down on
some of these expenses but yet written communication costs a lot to an organisation and of course
the environment because paper means cutting trees.
 Requires literate skill: Proper grammatical knowledge of a language is required to communicate
effectively. And written communication is constrained by grammar and of course the handwriting
if the records are not typed. Also, if poorly drafted messages are sent, it may lead to a loss of business
for an organisation.
4.2.1 Types of Written Communication

A person or an organisation uses different types of written communication based on different needs
and contexts.
Memos
Memos are used extensively for daily internal office communications. Nowadays, emails are fast
replacing the use of memos in organisations as memos are sent through hard copies. However, the
critical documents are usually printed and sent to all readers in hard copy memo form. At times, the
organisation requires sending lengthier documents that need closer scrutiny. Such documents are
usually sent as memo as it is quite difficult to read lengthy email messages. One more benefit of memos
is that the employees can take these memos into the meetings whereas email messages cannot be
taken unless printed. Memoranda formats differ from one organisation to another organisation. Most
commonly used Microsoft Word template for creating memos is shown as follows:
Memorandum
To: [Click here and type name]
CC: [Click here and type name]
From: [Click here and type name]
Date: 09/29/97
Re: [Click here and type subject]
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Proposals
A business proposal is defined as a written document from a seller that offers a particular service
or goods to a prospective buyer. Business proposals are important in scenarios where a buyer might
consider multiple prices in a transaction. A good business proposal considers the buyer’s requirements
and puts forth the seller’s proposal in a way that favours the seller’s products and services and persuades
the buyer about the offer. A business proposal is a critical document as it determines the difference
between success and failure in a venture. Business proposals can be:
 Solicited: These are requested by clients themselves, or submitted in response to an advertisement
published by the client. Solicited business proposals generally have a better chance of success since
they are tailored to the person receiving the proposal.
 Unsolicited: These are submitted to potential clients even though they did not request for one.
These are non-specific proposals and have no direct connection to the client’s requirements. Sellers
use them to market a product or service to a prospective customer. Because proposals are time
consuming, it is the best start with available templates if possible. You will save a lot of time if you
start with a proposal template that matches what you need and then customise it according to your
requirements.
A business proposal includes various sections as:
 Cover letter: A business proposal also needs a cover letter because a good cover letter will stimulate
interest in the proposal. Ensure to highlight your positives and personalise it to the client to whom
you are sending the business proposal.
 Executive summary: This is where you give the client a ‘problem statement’ to help the client identify
the challenges and requirements in their business. To persuade the client to do business with you,
you first need to make sure that the client realises they have those needs. Then you briefly state how
you will be able to help them meet those requirements.
 Proposal: The proposal is the part where you offer a detailed solution to challenges and needs of
the prospective client. This is the main reason for submitting a business proposal, so it should be as
detailed as possible, addressing all the needs of the client. You should explain to the client all services
you can provide for them. You should tailor your list of services to suit the particular client’s needs,
but include other services you may provide too. Also include an estimated project schedule and
time-frame.
 Pricing information: Most buyers consider the price of services before offering a contract. Thus,
getting accurate pricing information is crucial. However, two points must be kept in mind: It is
important to be exact with the pricing and the second is to never negotiate below what you think the
project is worth. For smaller projects, a ‘fee summary’ will do the job. But a ‘fee schedule’ is needed
for bigger projects, where payments need to be broken down to specific milestones.
 Terms and conditions: It is in your interest to get legal counsel to review the proposal to cover your
business against claims.
Major points that should be taken care of while preparing a business proposal are as follows:
 Market yourself: There is a high probability that if you have figured out that a client has certain
requirements, other sellers have figured this out too. What this means is that there is competition for
you. So, it is important to showcase your industry knowledge, accomplishments, experience, success
stories and other qualifications to persuade the client they should choose you or your company over
others. Be sure to include these in the actual proposal.
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 Research: At times, a client might not explicitly state the details of their requirements. In such cases,
you need to do thorough market research, including not just your client but their existing customer
base and competitors. This will make your proposal comprehensive, giving you edge over other
sellers.
 Think like the client: Thinking like a client would help you ask the questions the client might ask and
you will be able to provide answers to them beforehand. For example, a client might ask whether
a service you have suggested is actually needed. If you think like the client, you would be able to
provide the necessary information in the proposal itself.
Letter Writing
A business letter is quite different from other letters that we read or write in terms of content, format
and other features. Care should be taken in writing a business letter to avoid any miscommunication
or incomplete communication. There are some important or essential features of a business letter as:
 Clarity: A business letter should be written in lucid and clear language so that the receiver is able to
understand what the sender wishes to convey. Ambiguous language should be avoided at all cost so
that the meaning is clear. A good correspondent should organise the information in a clear, correct,
logical and impressive manner. Confusing the customer hampers business relationships.
 Simplicity: Using words for which the receiver needs to turn pages of a dictionary would not help
the business but put off the customer. Hence business letters should be written in correct but simple
and lucid language.
 Accuracy: All facts and figures mentioned in a business letter should be accurate. Remember that
any false statements may lead to loss of business and even legal action in extreme cases. Accuracy
also implies that the language written is grammatically correct. Errors in written correspondence
are never appreciated.
 Completeness: Business letters should be able to provide all information that is necessary for the
receiver to know or which the sender wants the receiver to be aware of. Incomplete information is
never appreciated and the customer may feel that the company is hiding facts on purpose. And if the
letter is from the customer to the company and the information regarding an order is incomplete,
it will delay the delivery.
 Conciseness: Time is very precious for the receiver as well as the sender. Hence a business letter
should be concise but not at the cost of completeness and clarity. Unnecessary repetition should be
avoided as lengthy letters are not appreciated; in fact, they irritate the receiver.
 Relevance: Only relevant information should be written in a business letter. There is no room for
irrelevant details hence should be avoided.
 Courtesy: Though formal, a business letter should also be courteous, respectful and sensitive.
Courtesy wins the heart of the reader. Being courteous and respectful can help even if there is a
dispute to be settled.
 Convincing power: The purpose of a business letter is to expand business, which means to win
customers. Hence a business letter should be highly convincing. A correspondent should have a very
good power of expression so that he/she creates a letter that is impressive, effective and of course
convincing. The power of persuasion of the correspondent is clear from a letter.
 Neatness: An untidy letter irritates the receiver. A good business letter, whether handwritten or
typed, should be neat and attractive. Untidy paper, overwriting and cutting should be avoided.
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A business letter has a different format from the other types of letters. There are some essential parts
of a business letter, that would not look like a business letter. The essential parts of a business letter are
1. Heading: The heading of a business letter includes the name and postal address of the business,
E-mail address, website address, telephone number, fax number and trade mark or logo of the
business (if any). Firms prefer to use printed letterheads these days. Many firms prefer to put much
of the above information at the bottom of the letterhead. This basically saves the top of the page
from looking cluttered. But the firm’s name should always be at the top. The name and address
of the firm are usually at the centre of the page, although the address may be optionally given at
the right side of the page. While writing the address, if the building number or the lane number is
being mentioned, no comma is required. The main purpose is to make the letterhead as neat and
impressive as possible.
2. Date: The date is normally written on the right-hand side corner below the heading, although it is
sometimes typed or written close to the left margin as well. There is a proper format for writing
the date as well. Any of the following may be used: 15th May, 20– or 15 May, 20– or May 15, 20–. It is
necessary, while writing the date, to avoid using abbreviations and cutting short the year as ‘09 or
‘10.
3. Reference: The reference number indicates a particular number allotted to the letter. It helps in
future reference and correspondence. This is a very important number, especially where a large
volume of correspondence is being handled. Reference number is given on the left-hand corner after
the heading, usually opposite to the ‘date’ and in the same line.
4. Inside address: The inside address includes the name and full address of the person or the firm to
whom the letter is addressed. This is written on the left-hand side below the reference number. The
name of the receiver should be prefixed with courtesy titles. If the letter is to an individual, then add
Ms., Mrs. or Mr. and if the letter is to a firm, then it should be addressed to the responsible head, e.g.,
the secretary, the chairman, etc. In case, the letter is addressed to a firm and no particular head is
known, then add ‘Messrs or M/s’.
For example:
M/S Nisha Enterprises
Nisha Complex 51, Nehru Place
New Delhi – 110019
OR
Ms. Nisha Chopra
Nisha Enterprises
Nisha Complex 51, Nehru Place
New Delhi – 110019
The inside address is exactly similar to the one written on the envelope.
5. Subject: It is customary to state in brief the subject of the letter. It is given to attract the receiver’s
attention immediately and enable him to understand what the letter is about. If any reference has
to be made to a previous letter, then it is also mentioned. For example:
Subject: Your order No. D124 dated March 10, 2009.
The subject is written or typed either on the left side below the inside address or five spaces away
from the left margin so that it stands out prominently from the other parts.
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6. Salutation: Salutation is a way of greeting the receiver. It is written below the inside address next to
the left margin. The words to be used for salutation depend on whom the letter is addressed to. For
example:
Sir or Madam For official correspondence with government
Dear Sir or Dear Madam This is the most commonly used salutation for a business letter to
a businessman or a businesswoman.
Dear Mr. Kant or Dear Mrs. Kant This type of salutation is used if you are familiar with the receiver.
The salutation may or may not end with a comma.

7. Body of the letter: This comes after the salutation. The body of the letter is the most important part
and the most difficult to write as well. It is to be divided into three paragraphs.
 Opening paragraph or the introductory paragraph
 Main part or the main body
 Concluding part or the closing part
8. Opening or introductory part: The introductory part deals with the message of the letter and
reference to any previous correspondence. This paragraph should attract the attention of the
receiver such that he feels inclined to read the entire letter with full concentration and interest. If
you fail here, the purpose is lost. Never begin your letter with stereotyped openings. The purpose of
this part is to create interest in the receiver.
9. Main paragraph: It is the longest part of the letter and therefore should be very carefully written
to avoid language errors and monotony. Care should be taken to avoid ambiguous words and to
ensure that no relevant details are left out. Moreover, the main paragraph must be edited carefully
before a final copy is made.
10. Concluding or closing paragraph: It is as important as the opening one. It should flow naturally
from the main part towards a conclusion. The purpose is to motivate the receiver for the action that
the sender wants. The language must be friendly yet forceful, gentle yet firm. Conclusion should be
made on a positive note. At the end, terms like thanking you, with warm regards, etc. should be used.
11. Complimentary close: This is a formal yet polite way of closing the body of the letter using respectful
phrases. As we generally call it, a complimentary close or subscription must be in accordance with
the salutation that has been used.
Table 1 explains how it may be written:
Table 1: Complimentary Close for a Business Letter

Salutation Subscription Remarks
Dear Sir Yours faithfully The most common formal subscription for business letters.
Dear Sirs
Dear Madam
Dear Mesdames
Dear Sir Yours truly Less formal, used for persons who are acquainted with each
Dear Sirs other.
Dear Madam
Dear Mesdames
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Salutation Subscription Remarks

Sir Yours respectfully To be used while addressing superiors.
Gentlemen
Madam
Mesdames
Dear Mr. Suraj Yours sincerely To be used for persons known to each other. This is used very
Dear Ms. Nisha commonly in business letters to show informal relations.
12. Signature: Even if the entire letter is typed, the signature is usually handwritten and should be
legible. Below the signature, the name and designation of the sender are typed.
For example:
Yours faithfully
(Signature)
Yash Chopra
Head – Marketing
OR
Yours faithfully
For M/s Chopra & Sons
(Signature)
Yash Chopra
Head – Marketing
13. Enclosures: Quite often there may be documents to be sent along with a letter. The documents may
be a cheque, a draft, bills, receipts, invoices, order forms, etc. In such a case, the mention of the
documents should be made in the letter as well, after the signature near the left-hand margin.
For example:
Encls: Two
OR
Encl:
1. A cheque for `10,000 (Ten Thousand Only) drawn on PNB.
2. A copy of the order from.
Even in the case of no enclosures, it is customary to mention as follows:
Encl: NIL.
14. Copy circulation: This is required when copies of a letter are to be sent to some other people as well
apart from the actual receiver. They may be marked as follows:
CC: Mr. Kant
OR
CC: The Manager, XYZ Company.
15. Postscript (PS): PS (Latin: Postscriptum) is required when the writer wishes to add something in
the body of the letter. This is also used to convey some important information but in a line. The
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person who has signed the letter must sign again, otherwise PS is meaningless. For example: PS My
heartiest felicitations on your assuming the charge of the department
(Signature)
OR
PS We provide 2–year on-site warranty. (Signature)
16. Reference initials: These days, it is customary to type the initials of two people, the first who has
dictated the letter and the second who has typed the letter. This is done towards the end of the letter
and close to the left-hand margin.
For example:
R.K./S.K.
This explains that R.K. has dictated the letter and S.K. has typed it.
Circulars
Circulars are documents used to communicate a common matter to a large number of people or
organisations. Examples of circulars include tender notices, change of address, opening of a new branch,
or introduction of a new product.
Notices
Every organisation conducts meetings regularly for various purposes. Meetings are usually planned and
a notice, along with the agenda of the meeting, is sent to those who are required to attend the meeting.
In simple terms, an agenda refers to a list of matters or activities to be discussed in the meeting, which
helps participants to be prepared beforehand. Once the meeting is over, the minutes of the meeting are
sent across to all who attended. Let us discuss the three terms notice, agenda and minutes.
NOTICE
A notice is circulated to all those who are entitled or required to attend the meeting. It is in writing and
is given well in advance. The notice also gives the date, time and venue of the meeting. It also specifies
as to why a meeting has been called. The notice is signed by a person competent to call the meeting. Let
us look at some specimen.
Notice 1
Notice to warn the public against dealing with a particular person.
Public Notice
This is to inform the general public that Mr. Sanjeev Kapoor, Manager – Marketing Division, has been
suspended on account of fraud. Anybody dealing with him will do so on his own risk.
Date: March 10, 2009
Sd/-
General Manager
Chopra Motors
2, Darya Ganj
Delhi –110006.
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Notice 2
Notice to the managers of all departments for a meeting with the M.D.
Chopra Motors
2, Darya Ganj, Delhi – 110006
Date: March 10, 2009
Notice for Meeting
This is to inform the managers of all departments that the M.D. has called for a meeting to discuss the
targets for the next financial year. The meeting has been scheduled for March 15, 2009 at 11:30 am in the
conference room.
Sd/-
Mr. A. Gupta
General Manager
Agenda
As discussed above, the agenda gives the contents of a forthcoming meeting and is usually sent along
with the notice. Therefore, the persons required to attend the meeting can therefore be ready for the
meeting and do any homework that may be required. Sometimes the agenda is unknown to all till the
meeting begins, and hence only the notice is circulated and that too without any agenda or purpose of
the meeting. Let us look at a specimen.
CHOPRA MOTORS
2, Darya Ganj, Delhi-110006
Agenda for the meeting to be held in the Conference Room on March 15, 2009 at 11:30 a.m.
 To look back and discuss the targets of 2008-2009.
 To appreciate the achievers.
 To discuss and set targets for the next financial year i.e. 2009-2010.
Mr. Gupta
General Manager
Minutes of the Meetings

By ‘Minutes’ we mean an official record of a meeting that has been held. The points discussed, issues
raised and decisions taken are all recorded in a concise and accurate manner. The minutes are helpful
in the future and are always recorded and filed properly. They carry the signature of the authority
who had called the meeting. He verifies and then signs and may act as prima-facie evidence in case a
dispute arises. They are generally not written in a narrative form. Minutes record the date, time and
venue of the meeting. The name of the presiding officer and the agenda are also recorded. The minutes
are recorded as soon as possible after the meeting. There are two kinds of minutes, namely minutes of
resolution and minutes of narration.
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Let us discuss these two types of minutes as follows:

 Minutes of resolution: In the minutes of resolution, only passed resolutions are recorded and there
is no reference to any discussion that was held preceding the resolution. Each paragraph begins
with the word ‘Resolved’.
Specimen of minutes of resolution:
Resolved that the incentives for the achievers of 2008–2009 be released before the end of this
financial year.
Further resolved that the targets for each zone be increased by 20% and the incentives by 50%.
There being no other item on the agenda, the meeting ended with a vote of thanks to the chair.
Dated: March 15, 2009

Sd/- Sd/-
G.M. M.D.
 Minutes of narration: In minutes of narration, in addition to the resolutions passed, an account of
the discussion, preceding the resolution, is also included.
Report Writing
A report is a formal statement related to an event or some activity. It contains a detailed account of a
problem or a situation, findings of an investigation, recommendations or action taken and suggestions
for the future course of action. It is easy for a proprietor to take decisions on the spot as and when
required because he knows his business inside out. But in large organisations, this is not possible. There
arises a need for reports to help analyse a situation and a suitable action plan. Thus, it can be said that
a report is an important tool used in the decision-making process. Reports can help the management
to review and evaluate the performance of various departments in the organisation; thereby
assessing the effectiveness of the organisation as a whole. Reports analyse situations and through the
recommendations, they help to bring about changes in business policies. Essential features of a good
report are:
 Accuracy: A good report should always be accurate and give an unbiased opinion. Only then correct
decisions can be taken.
 Simplicity: A good report must be in a simple and lucid language. This is required so that it is
understood by all who read it; otherwise, the purpose of writing the repot is lost.
 Clarity: Clarity of thought and expression is required to write a good report. The writer should have
a clear purpose, clear findings and recommendations. The report should be presented logically and
attractively. It should be divided into short paragraphs with suitable headings and subheadings so
that the report gives a neat look and not an over-cluttered look.
 Consistency: The report should be consistent with its purpose and not deviate from the main theme.
 Completeness: A good report is complete in all respects. No important details, facts and conclusions
are left out.
 Objectivity: There has to be objectivity in observation, collection of facts and writing of reports.
The final report should present all facts, in an unbiased manner. It should not be driven by personal
grudges or prejudices.
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 Conciseness: Although, we require a report which has all relevant data, but it should be concise.
Nobody has the time to read lengthy reports, hence it should be brief, but of course not at the cost
of clarity and completeness.
 Relevance: A report should be relevant to its purpose and no facts that may make the report
misleading or obscure should be added.
 Timelines: The purpose of the report is lost if it is not prepared well in time.
 Reader-oriented: While preparing a report, the reader should be kept in mind. Usage of jargon and
a high level of vocabulary will never help to achieve its purpose. The reader may be a layman; hence
it should be in a language that is understandable by all.
A report may be written in a letter form or a memorandum form.
LETTER FORM
Address
Date
Address
Dear Sir(s)
Subject
Para 1
Para 2
Para 3
Para 4
Yours Faithfully,
Sd/-
Designation
Contents [Body of the Report]
Para 1 – Terms of reference
Para 2 – Findings
Para 3 – Observations
Para 4 – Recommendations
The second kind of report is the Memorandum form. This is simple and has neither salutation nor
complimentary close. This format simplifies and speeds up the communication processes.
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MEMORANDUM FORM
ABC Automobiles
Delhi
To:
From:
Dated:
Subject:
Body of the Report
Resume Writing
If you call failures experiments, you can put them in your résumé and claim them as achievements.
—Mason Cooley
As a student, you will soon be applying for jobs, internships or volunteer positions. The first step in the
process is to develop impressive bios and resume that will help you get the attention of the potential
employers. An effective resume summarises the strengths and skills of an individual, offering him/her
an advantage over other candidates as job application forms do not highlight these details in the same
manner. Moreover, a resume keeps an updated record of your skills and experience, therefore, in order
to save time in the future, it is advisable to capture the accomplishments sensibly as they happen.
The current trends in the market show that resume alone do not suffice the purpose of landing an
individual to the desirable job. Most of the time, employers have a clear idea of the kind of people that
they want to hire for a particular job. Other times, jobs are filled through networking with friends,
family, existing or former co-workers, or through extended professional networking (LinkedIn). This is
where the concept of biography or bios of the job seeker finds relevance. A bios is a small biographical
profile of an individual which includes details that can be leveraged during networking activities. While
a resume is suited to apply for a specific job, a bios is best utilised to convey an individual’s background
in a crisp narrative format while networking.
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One-page professional bios are quickly gaining popularity not only because employers have little time to
spare on shortlisting candidates for interview, but also due to new platforms that accommodate shorter
formats. For example, LinkedIn only displays the summary of bios unless the user clicks on ‘show more’.
A sample bios is shown in Figure 1:
Kriti Sharma is a Freelance Writer and Social Media Manager who helps
finance professionals and startups attract an audience and clients online.
Before starting a writing business, Kriti spent six years as a Bank Teller an d Virtual
Assistant for financial companies in Mumbai and Bangalore. After a successful
career helping small banks and real estate agencies, Kriti now helps th em write
marketing copy for their products and services.
Kriti enjoys trying new sports (like archery) and managing a small property rental
business.
Kriti’s available for marketing an dwr iting projects, as well as private consultations.
You can reach Kriti at kritisliarma@domain.com.
Figure 1: A Sample Bios

Source: https://business.tutsplus.com/tutorials/how-to-write-a-short-bio–cms-30643
A Curriculum Vitae (CV) is a document that the job applicants use in place of a resume while applying
for jobs. Both CV and resume follow the same format. The main difference between the two is that while
a resume is typically a page or two in length, CV tends to be more detailed having multiple pages with
some additional sections. The main elements of a CV or resume are shown in Figure 2:
Personal Information
Educational Qualifications
Project/Internships Undertaken
Achievements/Awards
Professional Experience
Publications, Conferences
Areas of Interest
Languages Known
Figure 2: Elements of a CV/Resume

An effective resume/CV should have the following characteristics:
 It should clearly convey details of academic and professional experiences.
 All details should be listed chronologically (most recent first).
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A sample CV is shown in Figure 3:
Figure 3: A Sample Resume

Source: https://business.tutsplus.com/articles/professional-resume-templates--cms-30279
Elements of CV/resume are as follows:

 Personal information: The applicant should provide details of his/her name, address, phone
numbers and e-mail address. Details of date of birth, marital status or other information is optional.
 Educational qualifications: The applicant should add details about all his/her educational
qualifications starting with the most recent or expected degree. List the names of degrees, majors,
institutions and dates of completion (or expected date) in reverse chronological order (most recent
first).
 Projects/internships undertaken: The applicant should provide the title and a brief description of
his/her projects, the theoretical framework and conclusions, area of research etc.
 Achievements/awards: The achievements and awards received by the applicant should be listed in
detail.
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 Professional experience: This part of the CV is often divided into various categories such as
“Research Experience,” “Consulting,” “Fieldwork,” “Work Experience,” or “Postdoctoral Work,” as well
as many others, depending on the area of work.
 Publications, conference etc.: This part of the CV should accurately reflect the professional work that
an applicant has produced in his/her discipline. These should be arranged in reverse chronological
order and may be subdivided into sections. Work in progress should also be included.
 Areas of interest: List the courses you are prepared to teach and topics that indicate your present
and future research directions. If your background would allow you to teach in several fields, you
may want to include a list of graduate courses taken.
 Languages known: List all languages you read and speak and note those in which you are fluent.
Email Writing and Etiquette

Internet has revolutionised almost all spheres of our life. Even in the field of communication, the use of
e-mail has brought about drastic changes. E-mail has become more popular than any other means of
communication. When was the last time you wrote a letter and sent it by post? Let us look at the reasons
of its gaining so much popularity:
 It is a high-speed communication mode.
 It is cheaper and faster than a letter. All you need to do is, type your letter on your keyboard and click
and send. The transfer of messages is almost instantaneous.
 You can send the same letter, at the same time, to many recipients.
 You can send along any attachment you wish to.
 Time zones do not matter.
 Even faster than a telegram that was used earlier for faster transfer of important messages.
 You may write any length of a letter; it won’t cost you more.
 You may receive replies faster as well.
 It is a highly effective, low-cost method of transfer of information.
Since it is a written form of communication, all rules of written communication are applicable. Let us
look at the format of the ‘box’ in which we write an e-mail.
To:
Add CC/Add BC
Sub :
Attached
 To: Mention the correct e-mail address of the receiver. You may add more recipients.
 Sub: This means the subject of your mail. Be crisp and brief and it need not be a complete sentence.
But since this is the first thing that the receiver reads, it should catch his attention.
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 Attach file: Sometimes we wish to send files along with the mail and hence may be attached.
 The empty box is for your mail on letter.
 It should begin with a ‘Greeting’ which should spell courtesy.
 A ‘Complimentary Close’ is also required after the body of the mail.
 The language used should be simple and lucid and again all rules of communication are
applicable.
 The paragraphs should be short, crisp and focused.
Generally, abbreviations are not used for business letters (like the ones used to talk to friends.) However,
there are a few abbreviations that are accepted even in the business world. A few examples are given
below:
ASAP As soon as possible

FYI For your information
RSVP Please reply

FAQ Frequently asked questions
NB Please Note
Why does a company need e-mail etiquettes? It is important for every company to implement etiquette
rules for three major reasons:
 Professionalism: A proper e-mail language conveys a professional image.
 Efficiency: An e-mail that is grammatically correct and has a proper layout is effective than a poorly
worded e-mail.
 Protection from liability: The awareness of e-mail risks will protect a company from costly law
suits.
Let us now look at some e-mail etiquettes:
 Never make spelling, grammar or punctuation errors: This is important as errors in your
communication give a bad impression of your company, and hinder the communication process.
And, if your program has a spell-checking option, why not use it?
 Let it have a personal touch: An e-mail should be personally addressed, and should also include a
personal i.e., customised content.
 Answer promptly: People send an e-mail because they wish to receive a quick response; otherwise,
they would send a letter or a fax. Therefore, always send across a reply within at least 24 hours, and
preferably within the same working day. At least an acknowledgement should be sent across if the
reply cannot be sent stating that you will get back to them.
 Have a good virus scanner in place: You need to have a good virus scanner in place since your
customers will not be very happy if you send them documents full of viruses.
 A proper structure and layout should be used: A proper structure and layout give your content a
neat and clean look, and this is appreciated by the receiver.
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 Never write an e-mail in capitals: If you write in capitals, it seems as if you are shouting. This can
be highly annoying and irritating for the receiver.
 Reply along with the message thread: When you reply to an e-mail, you must include the original
mail in your reply; hence use the option ‘Reply’, instead of ‘New Mail’. This helps the receiver save
precious time in looking up for the context in which you may have replied.
 A Company should always add disclaimers to their e-mails: It is important for a company to
add disclaimers to both internal and external mails, since this can help protect the company from
liability.
 Use abbreviations and emoticons with care: Generally, in business e-mails, try not to use
abbreviations such as BTW (by the way) and LOL (laugh out loud). These are meant to be used in
informal communications. The recipient might not be aware of the meanings of the abbreviations
and in business e-mails these are generally not appropriate. The same goes for emoticons, such as
the smiley :-). If you are not sure whether your recipient knows what it means, it is better not to use
it.
 Give a meaningful subject to your e-mail: Always use a subject that is meaningful to the recipient
as well as yourself. The subject should also capture the interest of the recipient. For instance, when
you send an e-mail to a company requesting information about a product, it is better to mention
the actual product name, e.g., ‘Product A information’ than to just say ‘product information’ or the
company’s name in the subject.
 Use active voice instead of passive voice: The use of active voice adds clarity to our words, whereas
the passive voice is more formal and impersonal.
 Use ‘urgent’ and ‘important’ only if required: Remember always that certain words should only be
used when required, don’t make a habit of writing urgent or important.
 Avoid long sentences: Try to be as concise as possible. E-mail is meant to be a quick medium, hence
take care of not to send e-mails that are too long. If a person receives an e-mail that looks like a
dissertation, chances are that they will not even attempt to read it!
 Never send or forward e-mails containing defamatory, offensive, racist or obscene remarks: By
sending or even just forwarding one offensive remark in an e-mail, you and your company can face
court cases resulting in not only penalties but also destroy the image in the market.
 Never forward virus hoaxes and chain letters: Beware of virus hoaxes and chain letters as they
may contain virus. The best place for them is the Recycle bin.
 Language gender should be neutral: Always use words that are free from gender bias.
 Never reply to spam: By replying to spam or by unsubscribing, you are confirming that your e-mail
address is ‘live’. Confirming this will only generate even more spam. Therefore, just hit the delete
button or use e-mail software to remove spam automatically.
 Use cc: It is advisable to add ‘cc’ only when this person knows why he is receiving a copy.
 Being able to write in an effective manner is a necessary skill in the business environment.
 A notice is circulated in writing well in advance to all those who are entitled or required to attend the
meeting. The notice also gives the date, time and venue and the reason of the meeting.
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 Agenda gives the contents of a forthcoming meeting and helps the attendees be prepared for the
meeting.
 Minutes are an official record of the points discussed, issues raised and decisions taken in a meeting
that has been held. Minutes should be concise and accurate. There are two kinds of minutes: minutes
of resolution and minutes of narration.
 A business proposal is defined as a written document from a seller that offers a particular service
or goods to a prospective buyer.
 Business proposals are important in scenarios where a buyer considers multiple prices in a
transaction.
 Business proposals can be: Solicited or Unsolicited.
 A business proposal includes a Cover Letter, Executive Summary, Proposal, Pricing Information,
Terms and Conditions. Also important in a business proposal are: Marketing yourself, Research and
Thinking like the client.
 A report is a formal statement related to an event or some activity. It contains a detailed account
of a problem or a situation, findings of an investigation, recommendations or action taken and
suggestions for a future course of action.
 Reports are indispensable to decision making in large organisations. Reports help the management
to assess operations and performance.
 E-mail is a popular means of communication because it is high-speed, cheaper and faster than a
letter, can be sent to multiple recipients, enables any attachment, works in different time zones, may
be any length and might enable a faster reply.
 It is important in a business environment to follow e-mail etiquettes which include points like never
make spelling or grammatical errors, customise your mail, answer promptly, scan for viruses before
sending, use a proper structure and layout, never write in capitals, reply along the message thread
and add disclaimers.
4.4 GLOSSARY
 Attachments: An attachment is computer file sent along with an e-mail message used to share
images, documents etc.
 Template: A template is a file that can be used as a starting point for a new document
 Business proposal: A written offer or proposal presented by a seller to a prospective buyer
4.5 CASE STUDY: ROLE OF EFFECTIVE WRITING IN A WORK ENVIRONMENT
Case Objective
The case study discusses how important it is to write effectively at a workplace.
Devika Verma works as a senior researcher in the R&D wing of a major biotechnology company. Her
work requires her to not only conduct research for the company but also transfer her knowledge and
skills to new hires and trainees. She routinely writes down protocols, reports and project proposals to
further her research. She is valued not only for the dedication to the research she conducts but also
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the effort she puts in to write clear protocols and reports. However, a few months back such was not
the case. Devika was encountering major problems because of a lack of written communication skills.
The junior researchers and trainees who were using her protocols were making mistakes because the
instructions were not completely clear. Her reports were also creating misunderstandings with the
people she worked with. Frustrated, Devika decided to undergo a writing course catering to her needs.
With the completion of the course, Devika vastly improved on her writing skills and realised the mistakes
she was making. She corrected her mistakes and is now able to communicate in her workplace clearly
and professionally. She is regarded as an asset to her company because of her overall skills. This case
highlights the importance of effective writing and its role in success in a work environment.
Questions
1. How did bad writing skills affect Devika’s work?
(Hint: Mistakes due to unclear instructions, misunderstandings due to misinterpretations)
2. Do you think Devika was smart to take a writing course?
(Hint: She can now communicate clearly and professionally.)
3. Why was Devika a valued employee of her organisation?
(Hint: Devika Verma is valued not only for the dedication to the research she conducts but also the
effort she puts in to write clear protocols and reports.)
4. What problems were being faced by junior researchers and trainees?
(Hint: The junior researchers and trainees who were using her protocols were making mistakes
because the instructions were not completely clear.)
5. Apart from taking the training, what more efforts Devika can make to further improve her
professional writing skills?
(Hint: Consciously work towards improving aspects such as confidence, efficiency, organisation and
flow of content, grammar and spellings.)

1. Explain notice, agenda and minutes of a meeting.
2. Discuss how you would write a business proposal.
3. Discuss the importance, features, principles and format of report writing.

1. A notice is circulated to all those who are entitled or required to attend the meeting. It is in writing
and is given well in advance. The notice also gives the date, time and venue of the meeting. It also
specifies as to why a meeting has been called. The notice is signed by a person competent to call the
meeting.
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Agenda gives the contents of a forthcoming meeting and is usually sent along with the notice. The
persons required to attend the meeting can therefore be ready for the meeting and do any homework
that may be required.
There are two kinds of minutes, namely minutes of resolution and minutes of narration. In
the minutes of resolution, only passed resolutions are recorded and there is no reference to any
discussion that was held preceding the resolution. Each paragraph begins with the word ‘Resolved’.
In minutes of narration, in addition to the resolutions passed, an account of the discussion, preceding
the resolution, is also included. Refer to Section Importance of Written Communication
2. A business proposal is defined as a written document from a seller that offers a particular service
or goods to a prospective buyer. Business proposals are important in scenarios where a buyer might
consider multiple prices in a transaction. A business proposal includes various sections as: cover
letter, executive summary, proposal, pricing information and terms and conditions. Refer to Section
Importance of Written Communication
3. A report is a formal statement related to an event or some activity. It contains a detailed account
of a problem or a situation, findings of an investigation, recommendations or action taken and
suggestions for the future course of action. A report may be written in a letter form or a memorandum
form. Refer to Section Importance of Written Communication
 https://writingcenter.unc.edu/tips-and-tools/business-letters/
 https://www.paldesk.com/importance-professional-email-business/
 Engage in a group discussion on how to improve business writing and write down the
major points of discussion.
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UNIT
05 Assertiveness
Names of Sub-Units
Assertiveness, Managing Assertively, Increased Self-awareness, Dealing more Confidently and

Professionally, Making, Refusing and Accepting Requests more Effectively, Giving and Receiving
Feedback more Effectively, Handling Interpersonal Issues Effectively, Categories of Behaviour within
the Assertiveness Model: Passive, Aggressive, Assertive.
Overview
In this unit, you will get insight into the meaning of assertiveness. Also, the unit explains the benefits
of managing assertively. Towards the end, the unit explains the three categories of behaviour within
the assertiveness model, which are passive, aggressive and assertive.
Learning Objectives

 Explain the term assertiveness
 List the advantages of managing effectively
 Discuss the categories of behaviour within the assertiveness model
Learning Outcomes

 Identify the importance of being assertive
 Differentiate between assertiveness and aggressiveness
JGI JAIN
5.1 INTRODUCTION
Assertiveness refers to a skill that is regularly referred to in social and communication skills training.
Being assertive means being able to stand up for one’s own or other people’s rights in a calm and positive
way without being either aggressive or passively accepting the wrong. Assertive individuals can get
their point across without upsetting others or becoming upset. Although everyone acts in passive and
aggressive ways from time to time, such ways of responding often result from a lack of self-confidence
and, therefore, inappropriate ways of interacting with others.
5.2 WHAT IS ASSERTIVENESS?

Assertiveness is communicating and expressing one’s thoughts, feelings and opinions in a manner that
makes one’s views and needs clearly understood by others without putting down their thoughts, feelings
or opinions. It is the ability to express thoughts and feelings openly in an honest, appropriate, respectful
and direct way. It can be HARD to do, but it gets easier with practice. In assertive communication, both
individuals are considered to be equally important. The Concise Oxford Dictionary defines assertiveness
as Forthright, positive, insistence on the recognition of one’s rights. However, some people may struggle
to behave assertively for a number of reasons and find that they behave either aggressively or passively
instead. Thus, it is important to have clarity on the difference between assertive and aggressive
behaviour. Assertive behaviour includes:
 Being open in expressing wishes, thoughts and feelings and encouraging others to do the same.
 Listening to the views of others and responding appropriately whether in agreement with those
views or not
 Accepting responsibilities and being able to delegate to others
 Expressing appreciation of others for what they have done or are doing
 Being able to admit to mistakes and apologise
 Maintaining self-control
 Behaving as an equal to others
On the other hand, aggressive behaviour is based on winning. An aggressive individual always considers
his/her own best interest without regard for the rights, needs, feelings or desires of others. When one is
aggressive, the power he/she uses is selfish and may come across as pushy or even bullying. For example,
in an organisation, a superior who places a pile of work on a team member’s desk the afternoon before
he/she goes on vacation, and demands that it gets done straight away, is being aggressive. The work
needs to be done but, by dumping it on at an inappropriate time, the superior disregard the employee’s
needs and feelings.
5.2.1 Managing Assertively

Managing assertively helps managers to work effectively by sharpening their people skills. It also helps
managers to resolve conflicts and defuse interpersonal problems that invariably arise at work. In
addition, by managing assertively, one can overcome self-defeating behaviour and handle criticism to
maintain and enhance self-esteem. The benefits of being assertive are explained in the next subsections.
Increased Self-Awareness
When one chooses to be assertive, one develops a greater respect for one’s own opinions and expressing
them. Even when one feels that his opinion will not be accepted, one is comfortable expressing that
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opinion. In this way, it increases one’s confidence and saves time spent on thinking and realising that
one could not say what he/she wished to say. Moreover, it does not make one feel a sense of loss when
others disagree with the opinion. Apart from that, the more assertive one becomes, the clearer one
becomes about his/her personality. One gains the awareness of one’s identity, value system, believes,
likes and dislikes.
Dealing more Confidently and Professionally

The ability to confidently express how one feels and what one wants is an important life skill to possess
for personal and professional life. When one develops the ability to stand up for oneself, it is a great
confidence builder. The more one becomes comfortable with being open and honest with those around
whether it is a boss, co-workers or a family member, the more one’s feeling of self-worth will improve. In
the process, one will learn to ask for what he/she wants.
In an organisation, leaders need to be upfront, direct and able to delegate tasks in order to effectively
manage people and run a company. In one’s professional life, the ability to be assertive can put one on
the fast track to a leadership role. Unresolved issues that one is afraid to deal with will linger in his mind
and create stress. The ability to handle matters as they arise frees up room in one’s mind to accomplish
other tasks in your life.
Making, Refusing and Accepting Requests more Effectively

The ability to say what one needs lets other people know where he/she stands on a particular issue. It is
a strategy that builds open and honest relationships. In such a case, when one makes requests, it does
not sound as giving orders. Also, people do not feel offensive when one refuses to fulfil the requests made
by them. Apart from that, when one builds relationships with others by managing assertively, he/she
makes requests freely. In a similar way, one does not hesitate to accept requests made by others.
Giving and Receiving Feedback more Effectively

Giving and receiving feedback can be difficult and can result in feelings of anger, resentment and
defensiveness. However, constructive feedback can lead to positive change and improved relationships.
Giving and receiving feedback in a constructive way involves focusing on facts and specific observations,
avoiding value judgments and maintaining respect for the other person. As mentioned earlier, being
assertive is an effective communication tool. In an organisation, it helps managers to express their
observations about the behaviour of another person and the consequences of that behaviour. Similarly,
by being assertive, one can receive feedback by remaining calm, seeking clarity from the other person,
agreeing with any specific truth in the criticism and calmly disagreeing with specific statements that
are not true.
Handling Interpersonal Issues Effectively

Interpersonal issues arise from feelings, thoughts and behaviour that interfere with one’s ability to bond
with others in general or in particular types of relationships. However, by expressing one’s thoughts and
opinions freely, one can interact with their superiors, subordinates and co-workers effectively within
the organisation and consumers, suppliers and the general public outside.
5.3 CATEGORIES OF BEHAVIOUR WITHIN THE ASSERTIVENESS MODEL

People usually behave in one of three ways when they try to get what they want or say what they think
or feel. These are the ways of saying what you think or feel and getting what you want in a manner,
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which does not hurt other people and does not hurt you. This is called being Assertive. The other two
ways are called being Passive (or such as a mouse) and being Aggressive (or such as a monster).
5.3.1 Passive
Passive-aggressive communication involves expressing aggressive feelings in an indirect way through
passive resistance, rather than by openly confronting an issue. Examples include: sulking, ignoring the
other person, complaining behind the other person’s back, procrastinating, deliberately being late or
slow, intentional poor performance, acting in a way that will frustrate others, and ‘acting innocent’
when you have done something to hurt someone. If you try to avoid any sort of conflict or feel that your
views are less important than others, you are being passive. In this situation, you may use sarcasm, give
in resentfully or remain silent at your own cost. A passive person may express the following behaviour:
 Do not have rights  Denies or does not express feelings
 Do not respect self  Keeps it all in
 Exhibits low self-esteem  Feels everyone wins
 Blames others  Controlled by others
5.3.2 Aggressive
Aggressive behaviour often arises when you are angry. You feel the need to get your own way, regardless
of other people’s feelings or opinions, and as a result, people stop listening to you. You may bottle up
feelings that eventually explode or leaving no room for communication. If you act aggressively, then you
may not listen to others, interrupt other’s points of view, make threats or shout and use dramatic words
and be hostile. An aggressive person may express the following behaviour:
 Donot have rights  Expresses own negative feelings
 Do not respect others  Lets it all hang out
 Diminishes self-esteem in others  Feels that he/she wins
 Blames others  Controls others
5.3.3 Assertive
Being assertive is completely different to being passive or aggressive. Assertiveness involves clear,
calm thinking and respectful negotiation within a space where each person is entitled to their opinion.
If you lack assertiveness, then it can affect your relationships both personally and professionally.
If you act passively or aggressively in situations, over time, it can lead to stress, anxiety or even
depression as well as having a negative impact on your physical health too. By looking carefully at
how you communicate with others, you can begin to identify ways in which you can be more assertive
and help to improve your quality of life. An assertive person behaves in the following ways:
 Has rights
 Takes responsibility
 Expresses feelings in a constructive way
 Respects self and others
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 Assertiveness is communicating and expressing one’s thoughts, feelings and opinions in a manner
that makes one’s views and needs clearly understood by others, without putting down their thoughts,
feelings or opinions.
 Managing assertively helps managers to work effectively by sharpening their people skills. It also
helps managers to resolve conflicts and defuse interpersonal problems that invariably arise at work.
 When one chooses to be assertive, one develops greater respect for one’s own opinions and expressing
them. Even when one feels that his opinion will not be accepted, one is comfortable expressing that
opinion.
 People usually behave in one of three ways when they try to get what they want or say what they
think or feel. These are the ways of saying what you think or feel and getting what you want in a
manner, which does not hurt other people and does not hurt you. This is called being Assertive. The
other two ways are called being Passive (or such as a mouse) and being Aggressive (or such as a
monster).
5.5 GLOSSARY
 Assertiveness: An ability to speak up for oneself in a way that is honest and respectful
 Interpersonal issues: Conflicts that occur in interactions where there are real or perceived
incompatible goals, scarce resources or opposing viewpoints
 Passive communication: A style in which individuals develop a pattern of avoiding expressing their
opinions or feelings
5.6 CASE STUDY: ASSERTIVENESS - KAREN’S STORY
Case Objective
The case study discusses the importance of assertiveness.
Karen works for an insurance company on a weekly basis. She finds that certain colleagues ask her to
do some of their duties. Karen finds it tremendously difficult to say ‘no’, she thinks that it will cause an
argument and she will come across as rude. She also feels that people are taking advantage of her, her
workload is increasing and this causes her stress levels to rise, she starts dreading going to work and
her self-esteem and confidence are now being impacted on.
After Assertiveness Skills Training, Karen learns a variety of techniques that she can apply to her
everyday life. She learns that saying ‘no’ is not ignorance, it is just being assertive. People making
requests of her time and effort are just trying to shift their own responsibilities and this is unfair to her.
Now, when Karen is asked to complete another person’s task she does not feel guilty by saying ‘no’, she
has learnt crucially that is how you say ‘no’. Therefore, she uses one of the pre-prepared phrases ‘I would
like to, but I have to...’. She can now go on and complete her own tasks with ease of mind.
If Karen did not deal with her predicament, then her work performance and health could have been
further damaged. It is remarkable how someone’s self-esteem can impact their entire lives. When a
person like Karen lost her ability to stand up for herself and she felt powerless. By saying ‘yes’ she found
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that short-term she lacked guilt and felt helpful, but long-term she felt resentment and anger as she felt
a pushover. These internal negative thoughts could potentially lead to depressed emotions.
Karen felt a sense of empowerment after the course, she went back to her workplace ready to put into
practice the tools she had picked up. Immediately, she was able to get control over her responsibilities
again, she feels better about herself and is determined to keep it up. The organisation now gets the best
from a reliable worker.
Questions
1. What was the condition of Karen before attending the training programme?
(Hint: People taking advantage of her, her workload was increasing, and so on).
2. How did Assertiveness Skills Training help Karen?
(Hint: She learnt that saying ‘no’ is not ignorance, it is just being assertive.)

1. Explain the term assertiveness.
2. Distinguish between assertiveness and aggressiveness.
3. Write a short note on managing assertively.
4. What do you mean by passive-aggressive behaviour?

1. Assertiveness is communicating and expressing one’s thoughts, feelings and opinions in a manner
that makes one’s views and needs clearly understood by others, without putting down their
thoughts, feelings or opinions. It is the ability to express thoughts and feelings openly in an honest,
appropriate, respectful and direct way. It can be HARD to do, but it gets easier with practice. In
assertive communication, both individuals are considered to be equally important. The Concise
Oxford Dictionary defines assertiveness as Forthright, positive, insistence on the recognition of
one’s rights. Refer to Section What is Assertiveness?
2. Some people may struggle to behave assertively for a number of reasons and find that they behave
either aggressively or passively instead. Thus, it is important to have clarity on the difference
between assertive and aggressive behaviour. Refer to Section What is Assertiveness?
3. Managing assertively helps managers to work effectively by sharpening their people skills. It also
helps managers to resolve conflicts and defuse interpersonal problems that invariably arise at
work. In addition, by managing assertively, one can overcome self-defeating behaviour and handle
criticism to maintain and enhance self-esteem. Refer to Section What is Assertiveness?
4. Passive-aggressive communication involves expressing aggressive feelings in an indirect way
through passive resistance, rather than by openly confronting an issue. Examples include: sulking;
ignoring the other person; complaining behind the other person’s back; procrastinating; deliberately
being late or slow; intentional poor performance; acting in a way that will frustrate others; and
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‘acting innocent’ when you have done something to hurt someone. Refer to Section Categories of
Behaviour within the Assertiveness Model
 https://socialwork.buffalo.edu/content/dam/socialwork/home/self -care-kit/exercises/
assertiveness-and-nonassertiveness.pdf
 https://sphe.ie/downloads/mo2f/Assertive_Communication.pdf
 Along with your friends, study and discuss the ways in which a person can improve his/her
assertiveness skills.
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UNIT
06 Emotional Intelligence
Names of Sub-Units
Concept of Emotional Intelligence, Need for Emotional Intelligence for Managers, Elements of Emotional
Intelligence, Self Awareness, Self Management, Motivation, Empathy, Social Skills, Interpersonal
Skills, Managing Situations, Managing Emotions, Relationship Management, Stress Management,
Overcoming Challenges
Overview
The unit begins by explaining the concept of emotional intelligence, need for emotional intelligence
for managers. Thereafter, the second half of the unit discusses the important elements of emotional
intelligence, including self-awareness, self-management, motivation, empathy, social skills,
interpersonal skills, managing situations, managing emotions, relationship management, stress
management and overcoming challenges.
Learning Objectives

 Explain the concept of emotional intelligence
 Describe the need for emotional intelligence for managers
 Examine various elements of emotional intelligence
JGI JAIN
DEEMED-TO-BE UNIVERSIT Y
Learning Outcomes

 Discuss the perspective of other people
 Interpret work relationships as well as personal relationships
 Describe the social and emotional behaviours
6.1 INTRODUCTION
One of the most important aspects of an individual’s life is emotions. Emotions play an important role
in an individual’s personal as well as professional life. Without emotions, humans will not be able to feel
anything, no happiness, no sadness, no contentment, no fear, no surprise, no anger, no disgust and no
joy. The absence of emotions may make our lives meaningless, boring and monotonous.
Having emotions is a two-edged sword. Not having emotions is terrifying and having emotions also leads
to different types of problems. In management studies, the concept of emotions is based on emotional
intelligence, which we are about to study in this unit.
6.2 CONCEPT OF EMOTIONAL INTELLIGENCE

In organisations, there are various factors such as value system, work environment, job design,
emotional intelligence, organisational culture, etc., which affect human behaviour. In this context, it is
relevant to study the concept of emotional intelligence.
Emotional intelligence (EI) refers to the ability of an individual to understand and manage his own
emotions and those of the people around him/her. In other words, emotional intelligence relates to a
person’s personal and social competence and how he/she manages themselves and others through self
and social awareness. It involves understanding how your emotions impact yourself and those around
you. Emotional intelligence also dictates how a person reacts internally and externally to situations.
Emotional intelligence also helps in handling the interpersonal relationships. Business professionals
can also manage a situation of ethical dilemma by working on his/her emotional intelligence.
The term ‘Emotional Intelligence’ was coined by two American Psychologists, John Mayer and Peter
Salovey in 1997as follows:
The emotionally intelligent person is skilled in four areas: identifying emotions, using emotions,
understanding emotions, and regulating emotions.
According to Daniel Goleman, an American psychologist, who helped to popularise emotional
intelligence, the five key elements of emotional intelligence include self-awareness, self-regulation,
motivation, empathy, and social skills.
Robert K. Cooper defines emotional intelligence as the ability to sense, understand, and effectively
apply the power and acumen of emotions as a source of human energy, information, connection, and
influence.
When in a workplace, the level of emotional intelligence of employees and managers creates a huge
difference in their personal and professional success. It has been observed that the most successful
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leaders have high emotional intelligence. Therefore, companies should strive to develop an organisational
environment that encourages and develops emotional intelligence.
6.2.1 Need for Emotional Intelligence for Managers

Various psychology and management researchers have made observations that emotional intelligence
helps in improving professional and personal aspects of employees such as their performance
(individual, team and organisational), relationships, earnings, happiness and their connection to
others. Companies are usually advised to hire managers and employees with a high level of emotional
intelligence (measured by Emotional Quotient (EQ)) due to the following advantages:
 Leaders having high EQ usually have greater control over their emotions
 Employees and managers having high EQ usually help in improving the employer-employee relations
as they communicate effectively and empathetically
 Employees and managers having high EQ usually demonstrate better engagement and productivity
 Employees of the organisation usually experience emotionally healthier and more satisfying work
experience
 Work culture becomes amicable and inspirational
 Employees develop a culture that supports working together towards common goals
6.3 ELEMENTS OF EMOTIONAL INTELLIGENCE

In practice, various researchers have defined different models of emotional intelligence. Each model
describes the key elements of emotional intelligence differently. However, Goleman’s Model of Emotional
Intelligence is the most proclaimed and extensively used model. Daniel Goleman is perhaps, the most
commonly known name referred in the field of emotional intelligence. Goleman’s Model of Emotional
Intelligence is an extension of Mayer and Salovey’s work that identified four emotional intelligence
skills.
The works of Goleman are frequently referred to by other researchers conducting studies in the field of
leadership and managerial abilities. According to Goleman’s model, there are five essential factors that
determine an individual’s EI: emotional self-awareness, self-regulation, motivation, empathy and social
skills.
Let us now discuss the various elements of Emotional Intelligence that have been discussed by different
researchers. These elements also include the five elements of Goleman.
6.3.1 Self Awareness

A person who is aware and conscious about himself is always aware of how they feel and how their
emotions and/or actions can affect people around them.
Being self-aware is extremely essential for employees and managers deployed in leadership positions.
A leader must have a clear estimate of his strengths and weaknesses and he/she should know how to
behave with humility.
Self-awareness is important for effective management because of two reasons. One reason is that self-
awareness is the starting point for all behaviours and skills such as goal setting, effective communication,
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listening, motivation and stress and time management. If people are able to improve their understanding
of themselves, they can easily improve other skills such as listening and stress management. And two,
persons who are fully aware of themselves and their preferences are able to diagnose sources of conflict,
select appropriate strategies, and manage interpersonal relations and conflicts in a better manner.
6.3.2 Self Management

One important trait of effective managers and leaders is that they can manage themselves extremely
well. Employees who are able to regulate themselves effectively do not engage in verbal attacks, do
not make hasty decisions, do not stereotype people and neither do they compromise with their values.
Self-managing people always stay in control. As per Goleman, self-management also includes employee
traits such as flexibility and personal accountability.
6.3.3 Motivation
Motivation refers to an individual’s ability to motivate himself in order to achieve self-contentment as
against external praise or reward. Employees who are self-motivated exhibit the following traits:
 Greater commitment
 Focus on goal achievement
 Maintain high standards of quality for work
6.3.4 Empathy
For managing a team or an organisation, the managers and leaders must have the quality of being
empathetic. Being empathetic means that the leader or manager is able to put or imagine himself
in someone else’s situation. Empathetic leaders are advantageous to the organisation in the
followingways:
 Help develop team members
 Challenge unfair practices and their doers
 Provide constructive feedback
 Listen to team members as and when required
Great managers and leaders can earn the respect and loyalty of their team members by demonstrating
their genuine concern and empathy.
6.3.5 Social Skills

Employees having high emotional intelligence usually have great social skills. Having good social skills
means that the person possesses great communication skills and they are open to hearing bad news
as well as good news alike. Such people are also able to gather their team’s support quickly and get the
team members to do their assigned tasks. Not only socially skilled managers are able to get their teams
to work, they make the members look forward to and motivated about handling and working on new
projects.
Another important feature of socially skilled leaders is that they are excellent atchange management
and at resolving conflicts in a diplomatic manner. Such leaders lead by example.
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They set an example with their behaviour and also make everyone else do the work as assigned.
Figure 1: A Team with Good Interpersonal Skills

Source: https://corporatefinanceinstitute.com/resources/careers/soft-skills/interpersonal-skills/
6.3.6 Interpersonal Skills

Interpersonal skills refer to skills that are required for communicating and interacting with other
people on everyday basis. These skills include listening, speaking and questioning skills. These skills are
essential for employees specifically when they have to work with individuals and groups. People having
good interpersonal skills are usually considered as being good with people and they can communicate
exceedingly well both verbally as well as nonverbally.
People having high emotional intelligence are good at managing relationships Managers usually require
managing employees and relationships with employees. Managers having high emotional intelligence
are able to manage community.
6.3.7 Managing Situations

The managers and leaders in an organisation are usually required to deal with multiple and varied
situations. Some situations may be positive, some may be negative and some may even be hostile.
Therefore, it is essential that the managers are able to deal with all sorts of situations. People having
high emotional intelligence are usually talented in managing situations.
According to Moghadam, Tehrani & Amin, 2011, as an individual moves up in the organisational
hierarchy, the positive effect of emotional intelligence on coping with situations and doing tasks in
effective ways increases.
6.3.8 Managing Emotions

In the starting sections of this unit, you studied the definitions of emotional intelligence. Almost all
definitions of emotional intelligence state that emotional intelligence is about understanding and
managing the emotions of oneself and others around. Therefore, it can be said that one key element of a
person’s emotional intelligence is his ability to identify, assess, understand and manage the emotions of
self and others. This quality is essential for managers in order that they are able to manage behaviour
of employees and self, deal with all kinds of situations and take important decisions.
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6.3.9 Relationship Management

Relationship Management refers to the ability of an organisation to use their awareness emotions
of self and others to manage interactions successfully. As per Bradberry and Greaves, working on a
relationship takes time, effort, and know-how. The know-how is emotional intelligence. If a person can
utilise strategies for improving your self-awareness, self-management and social awareness; they can
successfully develop your relationship management.
6.3.10 Stress Management

Various studies have been conducted for establishing the relationship between emotional intelligence
and job stress. Almost all studies have shown a significant relationship between emotional intelligence
and job stress. It can be said that as an individual’s emotional intelligence increases, his ability to cope
with stress also increases. A direct result of having higher emotional intelligence is that the person
experiences less stress.
One such specific study was conducted at the Isfahan University of Medical Sciences to determine the
relationship between emotional intelligence and occupational stress among faculty members of the
institute. The correlation was analysed using the Pearson correlation test which showed that there
was an inverse relationship between emotional intelligence and job stress. It means that as emotional
intelligence increases, occupational stress reduces.
6.3.11 Overcoming Challenges

As per Goleman, 80% of success at work can be attributed to Emotional Intelligence (EI), whereas only
20% of success depends upon ordinary intelligence (IQ). It has been observed that there is an onset of new
technologies and new methods and various other changes. Therefore, individuals and organisations
which practise and promote emotional intelligence can increase their chances of dealing with challenges
such as changing technology, globalisation, developing new skills, high-stress levels, etc.
 Emotional Intelligence (EI) refers to the ability of an individual to understand and manage his own
emotions, and those of the people around him/her. In other words, emotional intelligence relates to a
person’s personal and social competence and how he/she manages themselves and others through
self and social awareness.
 The term ‘Emotional Intelligence’ was coined by two American Psychologists, John Mayer and Peter
Salovey in 1997.
 According to Daniel Goleman, an American psychologist, who helped to popularise emotional
intelligence, the five key elements of emotional intelligence include self-awareness, self-regulation,
motivation, empathy and social skills.
 Companies are usually advised to hire managers and employees with a high level of emotional
intelligence because leaders having high EQ usually have greater control over their emotions. Also,
employees and managers having high EQ usually demonstrate better engagement and productivity.
 Goleman’s Model of Emotional Intelligence is the most proclaimed and extensively used model.
According to this model, there are five essential factors that determine an individual’s EI: emotional
self-awareness, self-regulation, motivation, empathy and social skills.
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 Various elements of emotional Intelligence that have been discussed by different researchers include:
self-awareness, self-management, motivation, empathy, social skills, interpersonal skills, managing
situations, managing emotions, relationship management, stress management, overcoming
challenges
6.5 GLOSSARY
 Emotions: A conscious mental reaction that is experienced by a person which is usually accompanied
by physiological and behavioural changes in the body
 Emotional intelligence: A capacity to comprehend the manner in which individuals feel and respond
and to utilise this ability to make great decisions andto evade or take care of issues.
 Motivation: The driving force that leads to specific human behaviour
6.8 CASE STUDY: MUKUL’S LOW EMOTIONAL INTELLIGENCE
Case Objective
The case study explains the impact of low emotional intelligence.
Mukul was appointed as a hard-working policeman in 2010. Sub-Inspector Sandeep was Mukul’s
immediate boss. He was arrogant and demanding. He often used to mistreat his subordinates. Sandeep
wanted to get his personal tasks done by Mukul like dropping his kids to school, taking his family
members for shopping, and so on. Sandeep stayed near Mukul’s house and he used to invite Mukul at his
home quite frequently to make arrangements for his private parties.
Sandeep did not approve any holidays of Mukul. Mukul was frustrated due to constant and ill-intentioned
disproval of his leaves. He also tried to protest. The reason behind not approving leaves was that Sandeep
wanted Mukul to stay at their quarters all the time.
Mukul’s sister’s wedding had been fixed and he needed 15 days’ leave to make the necessary arrangements
for which he had to visit his native village. Mukul had been asking for leaves two months before the
wedding date. However, Sandeep kept refusing his leaves. Just one day prior to when Mukul had to
leave; he once again asked Sandeep. Sandeep made a really profane and derogatory statement. He said
that he will grant Mukul’s leave if he makes an arrangement for his replacement during his absence.
This statement shook Mukul and he was agitated. As Mukul’s level of frustration went really high, he
slapped Sandeep and injured him, and subsequently surrendered himself to the police.
Questions
1. Who, Mukul or Sandeep had higher emotional intelligence?
(Hint: Mukul and Sandeep both had low emotional intelligence.)
2. How would have been Mukul’s behaviour if he possessed high emotional intelligence?
(Hint: Mukul might have been able to complaint against Sandeep using the legal route instead of
being agitated and taking the law into his hands. He also lost his job and respect in doing so.)
3. Comment on the need for emotional intelligence in police officers.
(Hint: Emotional intelligence is absolutely essential for police officers as they work in a stressful and
provocative environment.)
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4. How would have been Sandeep’s behaviour if he possessed high emotional intelligence?
(Hint: Sandeep would not have dared to think ill about Mukul and specifically about his wife as
people with high emotional intelligence are aware that they should remain respectful and diligent
towards others.)
5. How should have Mukul’s wife responded to Sandeep’s advances?
(Hint: Maya should have protested clearly demonstrating her anger towards Sandeep’s advances.)

1. Explain the concept of emotional intelligence.
2. Describe why emotional intelligence is essential for managers.
3. Briefly explain the major elements of emotional intelligence.

1. Emotional Intelligence (EI) refers to the ability of an individual to understand and manage his own
emotions, and those of the people around him/her. In other words, emotional intelligence relates to a
person’s personal and social competence and how he/she manages themselves and others through
self and social awareness. It involves understanding how your emotions impact yourself and those
around you. Refer to Section Concept of Emotional Intelligence
2. Managers and employees with a high level of emotional intelligence have greater control over their
emotions. They help in improving the employer-employee relations as they communicate effectively
and empathetically. They also help in creating amicable and inspirational work culture. Refer to
Section Concept of Emotional Intelligence
3. Various researchers have defined different models of emotional intelligence. Each model describes
the key elements of emotional intelligence differently. However, Goleman’s Model of Emotional
Intelligence is the most proclaimed and extensively used model. According to Goleman’s model,
there are five essential factors that determine an individual’s EI: emotional self-awareness, self-
regulation, motivation, empathy and social skills. Refer to Section Elements of Emotional Intelligence
 https://www.futureofworkhub.info/comment/2020/1/31/emotional-intelligence-how-to-overcome-
the-upcoming-challenges-regarding-the-future-of-work
 https://positivepsychology.com/emotional-intelligence-skills/
 https://www.researchgate.net/publication/267803496_Study_of_the_Relationship_Between_
Emotional_Intelligence_EI_and_Management_Decision_Making_Styles
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 First, study and then discuss the Mayer-Salovey-Caruso Emotional Intelligence Test.
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UNIT
07 Leadership Skills for Effectiveness
Names of Sub-Units
Concept of Leadership, Importance of Leadership Skills for Managers, Meaning of Organisational

Culture, Building Organisational Culture, Meaning of Networking, Building Networking Across
Business Functions, Expanding Professional and Personal Networks, Leadership vs. Management—
Similarities and Differences, Key Managerial Skills, Motivating Others, Delegating Tasks, Giving
Feedback
Overview
The unit begins by explaining the concept of leadership and the importance of leadership skills for
managers. Next, the unit sheds light on the meaning of organisational culture and the building of
an organisational culture. Thereafter, the unit will discuss the meaning of networking, building
networking across business functions as well as expanding professional and personal networks. The
next section of this unit will help you gain an understanding of the subtle differences and similarities
between leadership and management. In the last section of this unit, you will gain some perspective
on the three key managerial skills namely motivating others, delegating tasks and giving feedback.
Learning Objectives

 Explain the concept and importance of leadership skills for managers
 Describe the meaning of organisational culture
 Explain how an organisational culture is built
 Discuss the meaning of networking and how a network is built across business functions
 Differentiate between leadership and management
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Learning Outcomes

 Understand the key aspects of managerial skills
 Appreciate the importance of networking for managers
7.1 INTRODUCTION
Every organisation looks for individuals who can lead people confidently and establish a sense of
direction to achieve organisational goals. An organisation cannot work without leading employees.
Leadership plays a significant role in the success of any organisation. A leader is an individual who
guides, influences and directs the behaviour of followers and other people. Leadership is the ability to
manage, motivate and influence workers to work with confidence and enthusiasm. Organisations use
leaders to influence a group of individuals to achieve common goals. The main objective of leadership
is to get the job done effectively through others. Organisations give the responsibility of developing,
motivating and inspiring employees to leaders so that the vision of the organisation can be achieved
successfully. Leadership qualities in an individual can be inborn and it can also be developed through
experience and education.
Leaders are those individuals who can set a common direction and purpose for other people. Individuals
having the leadership quality can convince people to move along with them in a particular direction
with commitment towards a common goal. It is very important to have the right knowledge, attributes
and skills for becoming a leader. Leaders give motivation and enthusiasm to other people.
There are numerous organisations, large and small-sized, that operate in various parts of the world.
All these organisations possess one or another type of culture. Organisational culture is a unique social
and psychological environment that exists within an organisation. Organisational culture is a result
of underlying beliefs, values, norms and ethics that are practised by the members of an organisation.
7.2 CONCEPT OF LEADERSHIP

The word leader is derived from the ancient English word “lædan”. The meaning of this word is to go
forward as a guide or to travel and show the way. Leadership can be defined as the art of directing, guiding
and influencing people or followers in an organisation towards the achievement of organisational goals.
The foundation of leadership is built on the level of trust, commitment, emotion and shared vision.
Leadership cannot be considered as a position or function because it is a relationship that exists among
people only when they trust each other. It plays a very important role in the management operations
within the organisation and is considered an integral part of management. Leaders must have the
ability to influence behaviour and attract others in such a manner that people follow their instructions.
Some of the definitions given by renowned authors are:
According to Keith Davis, Leadership is the ability to persuade others to seek defined objectives
enthusiastically. It is the human factor which binds a group together and motivates it towards goals.
According to Wendell French, Leadership is the process of influencing the behaviour of others in the
direction of a goal or set of goals or, more broadly, towards a vision of the future.
From the given definitions, it is clear that a leader is one who has the potential and ability to inspire
and influence the behaviour of people for achieving specific goals in a given situation. Leaders are
visionaries who have the potential to lead a group of people. A good leader is a dynamic individual who
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focuses on teamwork along with leading the team to produce effective results. Leaders are individuals
who are accepted by other people as their guides and motivators. The people who have faith in their
leaders can be termed as followers or employees. All leaders are not managers and all managers are not
leaders. There are some differences between a manager and a leader. Let us understand the differences:
 A manager is a person who is responsible for managerial functions, i.e., planning, organising,
staffing, directing and controlling, whereas a leader is responsible for team and group work.
 A manager carries out planning whereas a leader sets the direction.
 A manager concentrates on promoting the interest of the whole organisation and a leader monitors,
clarifies and influences the task performance of individual employees for maximising their rewards.
 A manager establishes the policies and a leader shows a path by demonstrating the way to perform
and initiate activities.
Characteristics of Leadership
Leaders play an important role in the growth of any organisation with their leadership skills. A good
leader shapes the behaviour of the people and guides them in such a manner that their followers or
employees work with full commitment to achieving the objectives of the organisation. Leadership
involves motivating teams and maintaining good interpersonal relations with every individual and
leading them towards their goals. The characteristics of leadership are:
 Interpersonal process: Leadership depends upon the personal qualities of a leader. The way a leader
influences the behaviour of people depends on the leader’s ability.
 Continuous process: Leadership is a never-ending process. In an organisation, the process of
persuading others to do a particular work never ends. Leadership encourages liveliness in the group
by encouraging individuals to give their level best.
 Group process: Leadership cannot be performed in isolation. In the absence of followers, there is
no leadership. Leadership at least requires two or more two persons. It is the process in which one
person, i.e., leader directs other subordinates or followers to attain the tasks assigned to them by
following specific instructions.
 Shape behaviour: Leadership helps an organisation to mould the negative behaviour of employees
into positive behaviour. It creates a positive culture in the organisation by reinforcing values.
 Situational based: Leaders can use different leadership styles based on situations faced by them.
There are different styles of leadership such as autocratic, participative and free-rein or Laissez-
Faire style.
7.2.1 Importance of Leadership Skills for Managers

Leadership plays a significant role in channelising the efforts of the employees in the right direction.
Leaders can mobilise the efforts of people by inspiring, supporting and developing enthusiasm. The role
of leadership is critical for organisational development as leaders help in creating and maintaining
interpersonal relationships with employees. The success of an organisation, as well as a country, depends
on the effectiveness of leadership. Let us understand the significance of leadership in the organisational
development with the help of the following points:
 It helps in influencing the behaviour of people: Effective leadership helps in inspiring, shaping
and controlling the behaviour of people through skills and capabilities. A good leader converts the
negative attitude of subordinates into positive by directing and influencing them through reward,
punishment, recognition and praise.
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 It enables implementation of changes: The business environment keeps on changing at a rapid

pace due to which an organisation needs to keep up with the changing trends. A good leader uses
experience to implement changes without much resistance from the employees’ side since leaders
can influence them. Leaders have a positive mindset and they move forward using their experience
to guide workers through the changing environment without feeling insecure.
 It resolves conflicts effectively: Effective leadership skills help in solving conflicts between employers
and employees or employees and employees. The leader uses skills to understand the nature of the
conflicts and find out possible ways for resolving them peacefully and on time. This helps to avoid
unfavourable conditions within the organisation. A good leader handles employees by listening to
them carefully.
 It helps in initiating action: An effective leadership enables employees to perform their duties
with commitment. Good leaders initiate employees to act in a particular manner until the goal is
accomplished. A leader is a visionary who predicts the results of a particular action in the future
and guides subordinates through effective communication skills which help them to start work. A
leader integrates various activities and maintains coordination between various departments.
 It helps in the training and development of the subordinates: A leader understands that change in
the methods of production or technology may require implementation of a training and development
programme. This will help in increasing the skills and technical abilities of the employees. In this way,
leaders make their subordinates cable of performing a complex task and also help in developing the
qualities of leaders in their subordinates.
 It motivates people: A good leader can understand the needs of the people and motivate them by
fulfilling their needs and keeping them satisfied. A leader guides employees with their work and
influences employees to perform their roles and responsibilities with the available resources.
Employees are given financial and non-financial rewards according to their performance which
motivates them to work with full commitment.
7.3 MEANING OF ORGANISATIONAL CULTURE

Organisational culture refers to the set of norms, values, beliefs, assumptions, perceptions and attitudes
that exist within an organisation and is held by its employees. Organisational culture is also known as
corporate culture. Organisational culture of any two organisations cannot be the same. In other words,
the culture of each organisation is unique. It guides the behaviour of an organisation’s employees by
defining the standards of acceptable behaviour.
Organisational culture helps in shaping the behaviour of employees in the organisation. Therefore,
it becomes important to understand the relationship that exists between organisational culture and
organisational behaviour. Since organisational culture helps in shaping the behaviour of employees in
the organisation, therefore, it is essential to recognise the relationship that exists between organisational
culture and organisational behaviour.
In the words of Wagner III and Hollenbeck, culture is the shared attitude and perceptions in an
organisation that are based on a set of fundamental norms and values and help members understand
the organisation.
In the words of Edgar Schein, culture is a pattern of basic assumptions invented, discovered or
developed by the given group as it learns to cope with its problems of external adoption and internal
integration worked well enough to be considered valuable and, therefore, to be taught to new members
as a correct way to perceive, think and feel, in relation to those problems.
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It is one of the most influencing factors that impact the behaviour of internal employees. It refers
to shared beliefs and values of an organisation that are established by a leader within the
organisation and communicated and reinforced among team members. A flexible and strong
organisational culture enforces good interpersonal behaviour and relations.
Various functions of organisational culture are discussed as follows:
 Provides a sense of identity to employees
 Enhances commitment towards organisation
 Defines the standards of behaviour
 Acts as a binding force
7.3.1 Building Organisational Culture

The culture of an organisation is not formed overnight. It is a time-consuming process. When an
organisation is established, no culture exists. It is only when the organisation comes into being and
starts its operations, the employees start working and communicating with one another, the interaction
starts among different stakeholders, such as suppliers, managers, employees and customers that the
culture of an organisation starts to shape.
Once the culture of an organisation has been formed, it is sustained through the efforts of employees.
Stephen Robbins, a pioneer in the field of organisational behaviour, has suggested that certain factors
are responsible for creating and sustaining an organisational culture. The factors responsible for
creating and sustaining an organisational culture are as follows:
 Founders’ philosophy: When an organisation is established, its founders and their values place a
major impact on the organisation’s culture and its vision.
 Selection criteria: Selection criteria followed in an organisation should ensure the selection of only
those candidates who fit into the organisational culture. The newly selected employees should be
able to adapt to the culture of the organisation. An organisation must have systems in place to help
employees easily understand and relatethemselves to the organisational culture.
 Top management: Actions of the managers at the top level of management have a profound impact
on the culture of an organisation. These actions may include standardising the acceptable level of
behaviour, establishing norms and defining codes of conduct.
 Socialisation: This means a process wherein all the employees and owners of the organisation
interact with each other. Their interaction along with the impact made by the top management
sets a standard for the employees to align and adapt with the organisation’s culture. According
to Robbins, the process of socialisation helps employees in adjusting with the culture of the
organisation. Socialisation, as a concept consists of the following three stages:
 Pre-arrival stage: This stage of socialisation comes before employees join an organisation. In
this stage, employees develop certain expectations from themselves and the organisation. This
stage entails all the learning that occurs before a new employee joins the organisation.
 Encounter stage: In this stage of socialisation, new employees get an opportunity to know the
organisation. In this stage, they face the reality which could be quite different from what they
had expected before joining the organisation.
 Metamorphosis stage: In this stage, long-lasting changes take place as the new employee excels
the skills required for his or her new roles. He/she also adjusts his or her work group’s values
and norms.
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7.4 MEANING OF NETWORKING

Networking refers to an activity of interacting and engaging with people for achieving some
mutual benefit. Good networking skills can help a person establish a new business or grow an
existing one. Networking can be used as a tool for finding investors, customers, staff, suppliers and
business partnerswith minimal cost to your business.
A person can create a network by engaging face-to-face at social events, conferences, industry
associations or through social media sites such as LinkedIn and Facebook. The more ways a business
network grows, the more a business will benefit. Networking skills can be developed with practice.
According to Uzzi and Dunlap (2005), there are three types of networks: operational, personal and
strategic.
i. Operational networks: A person’s operational network includes people who directly report to a
person, his/her superiors, people who can block or support a project, suppliers, distributors and
customers.
ii. Personal networks: A person’s personal network includes all those people who can provide important
referrals and those people who can provide information and often developmental support. Support
activities include coaching and mentoring.
iii. Strategic networks: A person’s strategic network provides opportunities to look at the bigger picture
through mentoring or they may also provide a different perspective on your organisation.
Although there is an overlap in all three types of networks, but strategic networking provides the
maximum and most visible impact on an organisation. An organisation should ideally look to expand
its network to tap even the accidental opportunities. The most beneficial power of a social network is its
referral potential. Referrals usually help in business and network expansion.
7.4.1 Building Networking Across Business Functions

Business networking involves connecting, establishing and building relationships that are mutually
beneficial for both parties. An organisation should focus on building a powerful network. For developing
a strong and long-lasting network of contacts, an individual or an organisation should take care of the
following points:
1. Ask for referrals: According to Randall S. Hansen, former CEO of Quintessential Careers, the
starting point for building a powerful network is to ask your current friends, family and associates
for references or contact information of people who might be beneficial for the growth of your
network. As per Hansen, ‘friend-of-a-friend’ connections are very strong, successful and beneficial.
2. Tap into your local community: Individuals and organisations can build a great network by tapping
local networking opportunities through different means such as a local chamber of commerce,
applications such as Meetup and by associating with local influencers and business leaders is a
solid way of building a network.
3. Have a game plan: Before approaching and trying to establish a business relationship with any new
contact, it is recommended that you do a bit of research about these new contacts, their scope and
expectations.
4. Be unforgettable: When you meet new connections, always try to stand out from the crowd and
present yourself in a manner that will create a lasting impression on the prospective client. This can
be achieved by making unique business cards, catchy taglines or wearing impressive attire.
Also, the prospective client should be contacted at reasonable gaps so that you remain in their
memory but the contacts should not be such that it bothers and irks them.
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5. Use social media: Social media platforms such as Facebook, LinkedIn, Twitter, Instagram, are used
extensively to connect and build a strong network. A businessperson should follow the following
three tips when using social media for networking:
i. Use a professional display picture
ii. The ‘About Me’ section of a businessperson’s social media profile should display a summary of
organisation’s professional identity and highlight achievements, projects handled, star clients,
etc.
iii. The social media profile must contain all details of businessperson’s experience, volunteer work
and CSR activities.
6. Pay it forward: Many people think that a businessperson must be helpful towards his prospective
clients. For example, they may offer some useful advice, expertise or introduce a new contact to
their potential client. By doing so, they are more likely to stay in touch and may prove to be a useful
resource at a later time.
Apart from these points, a businessperson should attend as many events as possible for better
networking.
7.4.2 Expanding Professional and Personal Networks

Individuals and businesspersons who have been working in a particular field for some years usually
possess an established network. However, in this era of ever-increasing competition, businesspersons
must strive to expand their personal as well as professional networks. Businesspersons can expand
their professional and personal network by following the steps as mentioned:
 Attend maximum possible research networking events and trade shows
 Become a part of a professional organisation
 Explore industries apart from your core industries also
 Explore your alumni networks
 Join special interest groups
 Regularly participate in group meetings
 Speak at events
 Pursue regular and frequent online engagements
 Pursue volunteer opportunities
7.5 LEADERSHIP VS. MANAGEMENT— SIMILARITIES AND DIFFERENCES

Major differences between leadership and management are shown in Table 1:
Table 1: Difference between Leadership and Management
Leadership Management
Definition Leadership refers to an individual’s Management refers to a process of directing,

ability to influence, motivate and controlling, coordinating and harmonising the
enable others to contribute towards activities of a group of two or more people for
organisational success. achieving some goals.
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Leadership Management
Personality Styles Leaders are usually brilliant and Managers are usually rational, persistent,
charismatic. They might be seen as strong willed, logical and intelligent. They focus
loners and private people. Leaders on problem solving.
usually believe in risk taking and usually
have high levels of imagination.
Orientation Leaders are people-oriented and focus Managers are task-oriented and focus on
on leading people from the front. managing work.
Outcomes Leaders focus on achievements. Managers focus on business results.
Approach to tasks Leaders try to develop solutions to Managers focus on creating strategies, policies
problems. They motivate others for and methods which are implemented using
solving problems and excel in their work. people.
They empower people by soliciting their views,
values, and principles. They believe that
this combination reduces inherent risk and
generates success.
Approach to risk Leaders are risk-takers. Managers are risk-averse.
Role in decision- Leaders facilitate decision making. Managers are involved in decision making.
making
Styles Leaders may pursue transformational, Managersmaypursuedictatorial, authoritative,

consultative or participative styles. transactional, autocratic, consultative or
democratic styles.
Power through True source of a leader’s power is his/ True source of a manager’s power is his/her
her charisma and ability to influence. formal authority and position.
Organisation Leaders have followers Managers have subordinates
Appeal to Leaders appeal to employees’ hearts. Managers appeal to employees’ heads.
There are certain similarities between leadership and management. First, both effective leadership and
effective management is demonstrated through their ability to effectively work in tandem with others.
Second, leaders and managers both must understand how their team operates and what tactics they
can apply to achieve success.
And third, both leaders and managers enjoy authority and the team members look up to them.
7.6 KEY MANAGERIAL SKILLS

Of all the managerial skills, there are three most important skills as follows:
1. Motivating others
2. Delegating tasks
3. Giving feedback
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7.6.1 Motivating Others

A manager must keep all his team members motivated. It is essential because motivated people usually
have a positive outlook and they seek excitement in what they do and are aware that they are investing
their time in a meaningful manner. Motivated people usually perform better than non-motivated
people because they enjoy what they are doing. It is only natural for managers and leaders to want only
motivated people in their teams. Therefore, it is the essential duty of a manager and leaders to ensure
that the employees remain motivated and inspired.
7.6.2 Delegating Tasks

In an ideal organisational structure, the top management plans certain goals and objectives which
are then translated into actual work deliverables for different departments. Each department usually
comprises of one or more work teams. The department heads usually assign certain work consisting of
multiple tasks to a team. The team managers are then assigned the responsibility of getting the entire
lot of work completed by a certain deadline. The managers have the responsibility of assigning work
to all team members according to their abilities and in a way that the work can be completed. In other
words, one of the important activities of a manager is to delegate work to team members. Effective
mangers must plan and collaborate with others. Managers also need to monitor employee performance
and also provide adequate feedback and development opportunities.
Real delegation occurs when the managers assign tasks to employees and also assign the responsibility
for outcomes or desired results. While delegating, the manager must also do the following:
 Communicate which person is responsible for which task
 Make each employee aware of their time deadlines
 Communicate that the employees are responsible for task completion as well as for producing
desired results
 Communicate that the employees need to take the onus of their work
7.6.3 Giving Feedback

The third most important managerial skills and duties are to provide and accept constructive feedback.
It is essential because constructive feedback and evaluation of employees’ work help them in correcting
their mistakes and improving their performance.
A manager should take care of the following points while providing feedback to an employee:
 Provide feedback promptly without waiting
 Provide specific and constructive feedback without demotivating the employee
 Ask for feedback because sometimes employees may provide feedback regarding the manager’s role
which helps a manager improve his performance
 Leadership plays a significant role in the success of any organisation. A leader is an individual who
guides, influences and directs the behaviour of followers and other people.
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 Organisational culture is a result of underlying beliefs, values, norms and ethics that are practised
by the members of an organisation.
 Leadership is important because:
 It helps in influencing the behaviour of people
 It enables the implementation of changes
 It resolves conflicts effectively
 Organisational culture refers to the set of norms, values, beliefs, assumptions, perceptions and
attitudes that exist within an organisation and are held by its employees. Organisational culture is
also known as corporate culture.
 Networking refers to an activity of interacting and engaging with people for achieving some mutual
benefit. Good networking skills can help a person establish a new business or grow an existing one.
Networking can be used as a tool for finding investors, customers, staff, suppliers and business
partners with minimal cost to your business.
 For developing a strong and long-lasting network of contacts, an individual or an organisation
should take care of the following points:
 Ask for referrals
 Tap into your local community
 Have a game plan
 Be unforgettable
 Use social media
 Pay it forward
 Leadership refers to an individual’s ability to influence, motivate and enable others to contribute
towards organisational success whereas management refers to a process of directing, controlling,
coordinating and harmonising the activities of a group of two or more people for achieving some
goals.
 Of all the managerial skills, there are three most important skills as follows:
 Motivating others
 Delegating tasks
 Giving feedback
7.8 GLOSSARY
 Feedback: The information about an employee’s performance of a task or activity or project

 Leader: An official position holder who motivates and inspires other employees to perform their
best
 Networking: The process of establishing mutually beneficial relationships with other businesses or
individuals
 Organisational culture: The collection of shared beliefs, values, expectations and practices that are
representative of and guide actions of all team members
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7.9 CASE STUDY: LEADERSHIP IN PIXAR ANIMATION STUDIOS
Case Objective
The case study explains the importance of leadership.
Pixar Animation Studios began its journey in 1979 as a part of the Computer Division of Lucasfilm. It was
acquired by Steve Jobs, the co-founder of Apple Computer, in 1986. Today, Pixar is known as one of the
most prominent leaders in the animation industry with its film studio based in Emeryville, California.
The studio has earned 26 Academy Awards, 7 Golden Globes and 3 Grammy Awards, along with many
other awards and acknowledgements. In 2006, The Walt Disney Company bought Pixar at $7.4 billion,
which was one of the biggest transactions made in the animation industry.
Pixar started its success story by producing Toy Story in 1995, which is one of the most successful first
long-length feature films made in CG animation format ever. The voyage was followed by A Bug’s Life
in 1998, Toy Story 2 in 1999, Monsters Inc. in 2001, Finding Nemo in 2003, The Incredibles in 2004, Cars
in 2006, Ratatouille in 2007, WALL-E in 2008, Up in 2009, Toy Story 3 in 2010, Cars 2 in 2011, Brave in
2012, Monsters University in 2013, Inside Out in 2015, The Good Dinosaur in 2015, Finding Dory in 2016,
Cars 3 in 2017, Coco in 2017, Incredibles 2 in 2018, Toy Story 4 in 2019 and Onward in 2020. All of these
films produced by Pixar are among the top 50 highest-grossing animated films. The success of Pixar is
attributed to its leadership and culture that consistently promoted Pixar to produce great films. Pixar
provides a model to energise employees by entrusting culture with shared attitude and behaviour that
helps the company in gaining a competitive advantage globally.
ED Catmull, the co-founder of Pixar Animation Studios and the president of Pixar Animation and Disney
Animation, followed these three guidelines for creating a culture to consistently make great films:
 Care about people first: Pixar made the welfare of its employees a priority. It identified that it is
the responsibility of leaders to protect employees at all costs. Catmull believes that no organisation
could sustain itself for long if it allows any harm to its people. This is because ideas come from
people and to attract the best people, the organisation should never ignore their welfare.
 Focus on a purpose that makes people feel proud: Pixar aims to ‘make great films.’ The Pixar
leadership believes that it is the great films that attract people to Pixar. It makes them feel proud
and energises them. It was the vision that made Pixar’s leaders see that Brad Bird (director) and
John Walker (producer) had the sound capability to make great films but at the same time, they also
knew that Bird did not have access to the kind of technology Pixar had. Therefore, they went after
him and offered a partnership. Pixar never focuses on profit first, because they knew that it would
lead to compromising the purpose and extracting the passion and energy out of the organisation.
 Encourage self-expression and diversity of thought: Unlike most companies that have a majority
of employees feeling that the senior management does not value their opinions and ideas, Pixar
values the ideas of its every employee.
According to Catmull, “Great movies are made from the tens of thousands of ideas that go into them
from beginning to completion. As such, everyone needs to contribute their ideas and opinions, everyone’s
work matters and everyone makes a difference in the quality of a film.” Catmull understands that in
the animation market where creativity and innovation are the most significant requirements for being
successful, self-expression and diversity of thought are the two parameters that can bring a competitive
advantage to any organisation. He believes that the best ideas can come from anyone in the company.
Therefore, the leaders need to create an environment that encourages a rich marketplace of ideas.
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Questions
1. What role does Catmull’s leadership played in creating a culture to consistently make great films?
(Hint: Catmull’s leadership was based on welcoming rich ideas from employees that maximised the
creativity and innovation for making great films.)
2. “A leader can influence a group of people towards the achievement of common goals and objectives.”
Ascertain the legitimacy of the sentence by taking an example of ED Catmull from the aforementioned
case study.
(Hint: Catmull works on a strong practical strategy for cultivating an artistic culture in the company
and an entrepreneurial spirit within individuals. It is the result of Catmull’s efforts that everyone at
Pixar has a great level of responsibility toward themselves and their colleagues.)
3. What guidelines were followed by ED Catmull for creating a culture to consistently make great films?
(Hint: Care about people first, focus on a purpose that makes people feel proud, and encourage self-
expression and diversity of thought.)
4. What is the major reason behind Pixar’s continued success?
(Hint: The success of Pixar is attributed to its leadership and culture that consistently promoted
Pixar to produce great films.)
5. What factors are most important for being successful in the animation market?
(Hint: In the animation market, creativity and innovation are the most significant requirements for
being successful.)

1. What is leadership and why is it important?
2. What is an organisational culture?
3. How is organisational culture formed?
4. How can a businessperson build a strong business network?

1. According to Wendell French, Leadership is the process of influencing the behaviour of others in
the direction of a goal or set of goals or, more broadly, towards a vision of the future. A leader is has
the potential and ability to inspire and influence the behaviour of people for achieving specific goals
in a given situation. Leaders are visionaries who have the potential to lead a group of people. A good
leader is a dynamic individual who focuses on teamwork along with leading the team to produce
effective results. Leaders are individuals who are accepted by other people as their guides and
motivators. The people who have faith in their leaders can be termed as followers or employees. All
leaders are not managers and all managers are not leaders. Refer to Section Concept of Leadership
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2. Organisational culture is a unique social and psychological environment that exists within an
organisation. Organisational culture is a result of underlying beliefs, values, norms and ethics
that are practised by the members of an organisation. It is one of the most influencing factors that
impact the behaviour of internal employees. It refers to shared beliefs and values of an organisation
that are established by a leader within the organisation and communicated and reinforced among
team members. A flexible and strong organisational culture enforces good interpersonal behaviour
and relations. Refer to Section Meaning of Organisational Culture
3. The culture of an organisation is not formed overnight. It is a time-consuming process. When an
organisation is established, no culture exists. It is only when the organisation comes into being
and starts its operations, the employees start working and communicating with one another,
the interaction starts among different stakeholders, such as suppliers, managers, employees and
customers that the culture of an organisation starts to shape. Once the culture of an organisation
has been formed, it is sustained through the efforts of employees. According to Stephen Robbins,
the factors responsible for creating and sustaining an organisational culture include: founders’
philosophy, selection criteria, top management and socialisation. Refer to Section Meaning of
Organisational Culture
4. Business networking involves connecting, establishing and building relationships that are mutually
beneficial for both parties. An organisation should focus on building a powerful network. Refer to
Section Meaning of Networking
 https://getsling.com/blog/people-management-skills/
 https://www.forbes.com/sites/allbusiness/2019/09/21/effective-business-networking-secrets/
 https://www.businessknowhow.com/tips/networking.htm
 Create a group of four people and discuss the significance of a manager giving feedback to his
employees. Also, discuss the nature of feedback that should be shared with the employees.
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UNIT
08 Leadership Challenges
Names of Sub-Units
Leadership Theories, Leadership Styles, Leadership Challenges and Strategies, Negotiation,

Importance of Negotiation.
Overview
The unit begins by explaining the different theories of leadership, leadership styles, leadership
challenges and strategies. The latter half of the unit talks about negotiation and its importance.
Learning Objectives

 Explain the different leadership theories
 Describe the various leadership styles
 Discuss the important leadership challenges and strategies
 Interpret the concept of negotiation and its importance
Learning Outcomes

 Appreciate the challenges that come with managerial leadership
 Understand how to strategise strategise and handle negotiations
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8.1 INTRODUCTION
In organisations, conflicts may occur between people or within groups. Conflict is often viewed by
leaders as an opportunity that help to build meaningful relationships between people and groups.
Conflict handling determines whether it proves to be productive or devastative. According to Guttman
(2004), an important and essential quality of a leader is his/her ability to handle conflicts. Leaders must
be able to handle conflicts to help maintain a productive working environment.
If a leader is able to establish an atmosphere and organisational value system based on cooperation and
teamwork, then there are high chances that this value system will be adopted by the entire organisation.
Therefore, conflict and negotiations are important management skills.
8.2 LEADERSHIP THEORIES

Leadership remains one of the most important aspects of an organisational setting. It deals with
listening, observing and encouraging followers to help them perform in a better way. Leadership is not
only about setting the agenda of work. It also deals with identifying problem areas, taking initiatives
for change and making improvements in the current organisational systems. There are numerous
leadership theories that provide information about effective leadership. Some main leadership theories
are discussed in this section.
Charismatic Leadership Theory

Charismatic leadership theory is deemed as the foremost leadership theory advocated by Plato and
Confucius. It was also called the great man theory. As per this theory, leaders are born and not made. It
was presumed that leaders possess a charismatic personality that would not be found in an ordinary
person. Charismatic leaders would easily stimulate and align others to accomplish a certain goal. The
term ‘charisma’ is derived from a Greek word meaning ‘gift’. Thus, a unique few blessed with charisma
could turn into true leaders and hold public attention. Another management luminary, Robert House,
further advocated charismatic leadership theory and stated that charismatic leaders were those who
possessed a great degree of referent power.
According to Robert House, the charismatic leader has extremely high levels of self-confidence,
dominance, and a strong conviction in the normal righteousness of his/her beliefs, or at least the ability
to convince the followers that he/she possesses such confidence and conviction.
The fundamental traits of charismatic leaders are as follows:
 To have phenomenal leadership calibre
 To have innate skills that cannot be changed or enhanced through education, training or development
 To remain unimpaired by external factors and apply inherent skills and qualities to resolve problem
Trait Theory
The trait theory of leadership underscores various personality facets associated with successful
leadership in different situations. Theoreticians researching on the trait theory tried to emphasise the
leadership characteristics from various perspectives. They believed that successful leaders have many
abilities, interests, personality traits, which are different in different individuals. Successful leaders
have the drive for achievement, motivation, self-confidence, knowledge of business, maturity and so
many other factors which a less successful leader would not have.
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UNIT 08: Leadership Challenges JGI JAIN
Figure 1 shows the two most common trait theories:
Trait Theory
Allport’s Cattell’s
Trait Theory Trait Theory
Figure 1: Trait Theories

 Allport’s Trait Theory: The theory of Gordon Allport emphasised that the personality of an individual
can be studied from the difference between his/her common traits and personal characteristics.
According to Allport, the common traits of an individual are compared according to six values such
as being religious, economic, political, social, theoretical and aesthetical. The common traits of an
individual are the personal characteristics which are different and can be categorised as follows:
 Cardinal traits: These are considered powerful traits and very few people have a personality
that is dominated by these traits.
 Central traits: These traits are common attributes that many individuals have in different
degrees. Examples of such traits are being friendly, jovial, loyal agreeable, and more.
 Secondary traits: These traits project the reason why a person behaves differently at times
than what is his normal behaviour. For example, a person who is generally happy can feel sad
on listening to some particular news.
 Cattell’s Trait Theory: Cattell’s trait theory highlights the fact that it is important to study a number
of factors before understanding the personality of an individual. He collected data with the help of
a questionnaire and analysed it with a statistical technique, known as factor analysis, to identify
various traits. The traits a person possesses can be identified on the basis of the responses filled in
the questionnaire. Cattell came up with many traits such as being warm, being vigilant, being lively,
being sensitive or being apprehensive.
Cattell’s trait theory is based on the concept that every individual has traits that are common, but
may vary in different degrees. These traits stay consistent over a period of time, and these can be
measured through various indicators of behavioural studies.These give an understanding of their
identity and the manner in which it will affect others working in an organisation.
Behavioural Theory
The behavioural theory was developed scientifically by behaviour-focussed studies. This theory
emphasises on certain behaviours and actions of leaders and not on their traits or attributes. As per
this theory, leadership ability is exhibited more in the actions and behaviours rather than the personal
traits of an individual. These skills are defined as follows:
 Technical skills refer to the individual’s knowledge of the system, processes and techniques.
 Human skills refer to the ability of the individual to be able to interact with other individuals.
 Conceptual skills refer to the ability of the leader to come upwith innovative ideas for running the
organisation successfully and strategic decision making.
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The behavioural approach lays a lot of emphasis on the behaviour and action of the leaders within an
organisation. It does not depend on their characteristics or traits for running the system. The approach
focusses on the fact that a particular behaviour of a leader will make him effective, and if he/she does
not have that behaviour, then he/she can not be a good leader. He/she needs to have the right behaviour
for motivating employees and setting goals for achieving the objectives of the organisation. Leaders
need to have good communication skills and the ability to interact and build team spirit.
Contingency Theory
The contingency theory emphasises different factors in a specific situation that determines the style
of leadership. The contingency theory was developed by Fred E. Fiedler. According to the contingency
theory, no one leadership style is applicable in all situations. Good leaders need to have the right qualities
and they should evaluate the needs of their people according to the situation at hand. The contingency
theory suggests that great leadership is a combination of many key variables.
According to Fiedler, for understanding the contingency theory, it is necessary to know the style of the
leader, which can be identified through the ‘Least Preferred Co-worker Scale (LPC). The LPC has a set of
questions that are formulated to identify the kind of employee a leader would most prefer to work with,
and, in turn, this would demonstrate the leader’s way of working. The Fiedler’s Contingency Modeltries
to match the leaders’ style using LPC according to the situationin which they would succeed. The two
types of LPC scores are:
 High LPC score: According to Fiedler, a leader with good personal skills depends on building
relationships with others to fulfil tasks. A high LPC score highlights that the leader is people-
oriented.
 Low LPC score: As per Fiedler, a leader with a low LPC score will give priority to the task first and
will focus on maintaining relationships only if satisfactory outcomes are obtained. This exhibits
that the leader is task-oriented.
Transformational Leadership Theory

According to the transformational leadership theory, a high-performance workforce can be built when
leaders are able to inspire their followers to work beyond their job responsibilities. A transformational
leader should have the following characteristics:
 Inspirational: It refers to the quality of motivating employees to perform better. A transformational
leader should inculcate the feeling of teamwork among employees by his/her enthusiastic and
optimistic approach.
 Intellectual: It refers to the quality of being rational and logical. A transformational leader should
be intellectual to analyse the problematic situations and give appropriate solutions.
 Idealistic: It refers to the quality of being morally right. A transformational leader should be idealistic
if he/she wants his/her followers to be devoted and committed. He/she should not be unfair while
dealing with his/her followers.
8.3 LEADERSHIP STYLES

Leadership style is the method adopted by leaders to guide, motivate and inspire people for following
them. A good leader can motivate people and influence them in the desired manner for achieving
particular results. Styles of leadership can be further developed with practical knowledge and experience.
Therefore, it can be said that the pattern of actions and behaviour of an individual that inspires other
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people is known as the leadership style. Leadership style shows leader’s competencies, skills, attitude,
talents and philosophies. Let us understand different types of leadership styles that can be adopted by
leaders:
 Autocratic style: In the autocratic leadership style, leaders keep the power to take decisions with
themselves. This style is also known as the authoritative style. Leaders believe in assigning work,
giving orders, and responsibilities without consulting others. Under this leadership style, leaders
use coercive measures such as punishments and other strict ways to get the work completed.They
do not care about employees’ opinions and centralise authority. These leaders do not let others
influence their decisions and they enjoy authoritative positions. Autocratic leadership style helps in
reducing mistakes in the implementation of plans and enables fast decision making. For example,
leadership styles followed by Adolf Hitler, Napoleon Bonaparte, a hostel warden, etc.
 Democratic style: In the democratic leadership style, leaders involve other persons in the decision-
making process. This style is also known as the participative style of leadership. They make decisions
while taking the opinion of others at work and believe in the decentralisation of authority. This
leadership style is also known as the participative leadership style because leaders consul to thers
and let them participate in the decision-making process. Leaders give freedom to the people to
share their ideas while making plans and policies. They lead through persuasion and encourage the
participation of employees in discussions. Under the democratic style of leadership, leaders do not
believe in instilling fear of punishment on people for getting their work done. For example, Nelson
Mandela, Steve Jobs, etc.
 Laissez-faire style: In the laissez-faire style of leadership, leaders are non-interfering and do not
exercise any power and responsibility. Instead, they believe in complete delegation of authority. This
style is also known as free-rein style or no leadership at all. They prefer to take less initiative and
pass on the responsibility for decision making to their subordinates. They do not believe in exercising
control. The leaders who follow this leadership style give employees full authority to set their own
goals and also take care of their problems. They believe that if the employees have the freedom and
are left to themselves, they will put in their best effort for obtaining results. This kind of leadership
has a major disadvantage. There is no control of the leader on employees, as a result, leaders fail
to provide continuous feedback. This increases costs, lack of coordination and low productivity. For
example, the US Ex-President John F. Kennedy, Warren Buffet (American Investor),etc.
 Bureaucratic style: In the bureaucratic leadership style, leaders follow a structured way of working.
They ensure that employees also follow the set procedures. This type of leadership leaves no space to
explore new ways to solve issues because leaders prefer to work according to the preset standards.
This type of leadership is normally followed in hospitals, universities, banks and governmental
organisations to bring down corruption and increase security. Self-motivated individuals who are
highly energetic often feel frustrated in this leadership style because of the organisation’s inability to
adapt to the changing environment. For example, Harold Geneen, who was the CEO of International
Telephone and Telegraph Corporation (ITT), is considered to be a bureaucratic leader and his success
is attributed to his strong focus and bureaucratic style of management.
 Charismatic style: In the charismatic leadership style, leaders infuse a lot of enthusiasm and boost
the energy levels of employees. They work with a goal or a mission and are visionaries who drive
their team to gear to a high level of performance. Leaders are dedicated to their organisation and
are a boon to the organisation. Leaders who adopt this leadership style have the ability to engage
large audiences. For example, Mahatma Gandhi, Nelson Mandela, etc.
 Directive style: In the directive leadership style, leaders monitor and guide employees in their work.
They delegate tasks, schedule work, maintain records and increase the performance levels of the
employees. Directive style is very useful when the employees have a low level of motivation or if a
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conflict arises between different people. It is mostly used in organisations where there is hardly any
scope of error. For example, law enforcement, military, etc.
 Supportivestyle: In supportive leadership, leaders are friendly and approachable towards employees.
They show concerned towards employees and help them in facing problems while performing work.
Under this leadership style, leaders listen carefully to their employees and help them deal with
stress. Leaders also train their employees to deal with conflicting issues. For example, Joe Paterno, a
former American football player is considered as a supportive leader and coach.
 Situational style: In the situational leadership style, leaders of the organisation adjust their style
to fit the development level of their followers. This style was developed by the Kenneth Blanchard
and Paul Hersey. In situational leadership, the style may change continually to meet the needs of
the situation in the organisation. Hence, situational leaders follow various styles of management
to suit the organisational requirement. For example, Jack Stahl, who was the former President of
Coca-Cola and CEO of Revlon, demonstrated a situational leadership style.
8.4 LEADERSHIP CHALLENGES AND STRATEGIES

In a study conducted by the Center for Creative Leadership, researchers conducted a study on leadership
challenges around the world. For this purpose, the input was gathered from 763 middle- and executive-
level leaders in organisations from China/Hong Kong, Egypt, India, Singapore, the United Kingdom,
Spain, and the United States with respect to the top leadership challenges. In the study, it was found
that leaders around the globe faced six major challenges. The manner or way of describing these
six leadership challenges was different but all those challenges basically boiled down to the top six
challenges as follows:
1. Honing effectiveness: Leaders across the world found that developing relevant skills such as time-
management, prioritisation, strategic thinking, decision-making, etc., are essential for being more
effective at work and it is quite a challenging task to develop such skills in others.
2. Inspiring others: For leaders, it is quite a challenging task to inspire and motivate their team
members and subordinates so that they are satisfied with their job and work diligently.
3. Developing employees: For leaders, it is difficult to develop employees by mentoring and coaching
them.
4. Leading a team: Leaders have to do difficult task of building, developing and managing teams.
Some of the leadership challenges usually include instilling pride, providing support, leading a big
team and taking over a new team.
5. Guiding change: Leaders usually face challenges in the case of change management which includes
managing, mobilising, understanding and leading change. Dealing with change also includes
deciding mitigating consequences, overcoming resistance of employees to change, and dealing with
employees’ reactions to change.
6. Managing stakeholders: Leaders also find it challenging to manage relationships, gaining
managerial support, and getting buy-in from other departments, groups or individuals.
8.5 NEGOTIATION
Negotiation can be referred to as a process by which entities having varied preferences and interests
try to concur on a common solution. Furthermore, parties are committed to achieve peaceful results
of dispute resolution. Negotiation is a communication process that helps manage all types of conflicts
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in an effective and mutually satisfying manner. It brings negotiating parties together to arrive at a
solution that is accepted by both parties.
Applying negotiation to resolve conflicts is a compromising approach that focusses on changing the
behaviour of negotiators to reach an agreement. It is important to know that the terms ‘negotiations’
and ‘bargaining’ are often used interchangeably, but bargaining is the negotiation regarding price only.
Negotiation can be termed as a conflict-resolution process used in situations where the interests of two
or more parties clash with each other and no party wants to sacrifice for the other. Negotiation aims to
bring a win-win situation for parties involved in a tussle.
If parties are willing to solve a problem mutually, then negotiation can be a tool for conflict resolution.
In addition, the negotiator should opt for a diplomatic approach to address the conflict. However, the
successof negotiation depends on various factors, such as relationship between parties, prevailing
situation and personality traits of individuals involved in the conflict. The process of negotiation
is also known as the conflict process model. A negotiation process can be defined by the following
characteristics:
 The minimum number of parties required for negotiation is two.
 There is no pre-determined set of rules and procedures to resolve a conflict.
 Parties involved in negotiations trying to reach a mutual agreement.
According to Robbins, Negotiation is a process in which two ormore parties exchange goods or services
and attempt to agree on theexchange rate for them.
According to Rubin and Brown (1975), “Negotiation refers to a processin which individuals work
together to formulate agreements about the issues in dispute. This process assumes that the parties
involved are willing to communicate and to generate offers, counteroffers, or both. Agreement occurs
if and only if the offers made are accepted by both the parties.”
According to Kavita Singh, “Negotiation is a process by which twoor more parties each with its own
goals and perspectives coordinateareas of interest through concessions and compromise to reach
anagreement and take the joint decision about areas of common concernsin a situation in which
neither side has nor wants to use power.”
There are two types of bargaining strategies, which are as follows:
 Distributive negotiation: In this bargaining strategy, one party’s gain is dependent upon the other
party’s loss. It is a type of competitive bargaining strategy, which is used to distribute fixed resources
among conflicting parties. These resources may include money, properties, assets, etc. As the assets
or resources to be distributed are fixed in such cases, distributive negotiation is also known as zero-
sum negotiation.
 Integrative negotiation: In this bargaining strategy, parties strive to find a win-win solution in
which both parties are mutually benefited. Solutions are put forward and instituted by offering the
maximum benefit to both the parties involved.
8.5.1 Importance of Negotiation

It is important for a good leader to be a good negotiator as well. Presence or lack of good negotiation
skills can create conditions for a successful or unsuccessful career. Negotiation is required for different
purposes as follows:
 At starting job in acompany: Before even you have started doing a job at a company, you are
negotiating with them to gain a place and secure a salary to your liking. It is essential that both
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parties strike a good balance and leave the company in a good financial position while keeping the
new employees motivated.
 Building supplier and customer relationships: Everyday a company has to negotiate suppliers and
customers and this is a negotiation. When an employee learns to negotiate the best prices with
vendors or customers without being rude and damaging relationships, the company can build
longstanding ties.
 Conflict resolution: As an employee’s career moves up into management positions, they also need
to settle disputes within the internal departments. In such a case, a good manager should negotiate
in such a way that both parties are satisfied and continue to work in a productive manner for the
company.
 Leadership is not only about setting the agenda of work. It also deals with identifying problem areas,
taking initiatives for change, and making improvements in the current organisational systems.
There are numerous leadership theories that provide information about effective leadership.
 Charismatic leadership theory is deemed as the foremost leadership theory advocated by Plato and
Confucius. It was also called the great man theory. As per this theory, leaders are born and not made.
 The trait theory of leadership underscores various personality facets associated with successful
leadership in different situations. The oreticians researching the trait theory tried to emphasise on
the leadership characteristics from various perspectives.
 As per behavioural theory, the leadership ability is exhibited more in the actions and behaviours
rather than the personal traits of an individual.
 The contingency theory emphasises different factors in a specific situation that determines the style
of leadership. The contingency theory was developed by Fred E. Fiedler.
 Different types of leadership styles that can be adopted by leaders are: autocratic style, democratic
style, laissez-faire style, bureaucratic style, charismatic style, directive style, supportive style and
situational style.
Top six leadership challenges are:
1. Honing effectiveness
2. Inspiring others
3. Developing employees
4. Leading a team
5. Guiding change
6. Managing stakeholders
 Applying negotiation to resolve conflicts is a compromising approach that focusses on changing the
behaviour of negotiators to reach an agreement.
 It is important for a good leader to be a good negotiator as well. Presence or lack of good negotiation
skills can create conditions for a successful or unsuccessful career.
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8.7 GLOSSARY
 Charisma: A quality of attractiveness or charm in an individual which inspires and motivates others
 Negotiation: A dialogue-based process using which people settle their differences
 Bargaining: The process of negotiating the terms and conditions or price of a deal or a contract
8.8 CASE STUDY: SAUMYA AS A LEADER – FOCUSSED BUT CONFUSED
Case Objective
The case study explains the importance of an effective leader in an organisation.
Mega Family Shopping Arena (MFSA) is a famous store that sells everything ranging from clothes, shoes,
food, electronics and household items, stationery items, toys and furniture. MFSA was founded with a
motive to place itself as a one-stop shop for customers where they could easily find all the things they
need. The well-established and reputed store has loyal customers to under customer loyalty programmes.
Saumya Singh joined MFSA four years ago as the Operations Executive. Later on, she also achieved the
Operations Assistant Manager (OAM) position due to her hardwork, loyalty and love for her job. She was
so much workaholic that sometimes her seniors and colleagues forced her to go on a vacation or take
leave. She was also looking forward to being promoted in the performance appraisal cycle due in March.
Her excellence at her work and selfless effort helped her promote to the position of the Store Manager.
Her promotion impacted a change in her job profile also. Now, she was not responsible for handling day-
to-day administrative tasks and client dealing which she used to do earlier. The new job role of Saumya
involved handling marketing and advertising plans of the store and managing the supply chain. All
OAMs of the store were now required to prepare a dailyreport and present it to Saumya at day end. The
responsibilities of OAMs comprised handling administrative duties, handling customer complaints and
dealing with the counter staff.
Saumya due to her perfectionist nature liked to make all decisions by herself only. She even took
decisions of the OAM level. She never believed in the participation theory of subordinates and colleagues
in decision making. Lack of the decision-making power restrained OAMs from having ownership sense
in their jobr oles. This made AMs ask Saumya for guidance even on simple issues and propelled decision
making towards her. One day a regular customer, Shruti Kakkar, also a member of the store’s loyalty
programme, visited the store to return a wrinkle-free trouser purchased a week earlier. Ms. Kakkar
wished to return the trousers as they got shrunk in just one wash. This made her a little upset too. The
return policy of the store stated that the amount was refunded if the customer returned the product
within a week of purchase along with its original bill. Shruti Kakkar presented the original bill and the
trouser asking for a full refund. At that particular time, Saumya was attending an off-site meeting.
Thus, she was not in the office. Ritvik, one of the OAMs, refused to make a refund decision as he was not
sure of ascertaining the number of days from the day of purchase. He was confused about the purchase
day or not. Ritvik asked Ms. Kakkar to visit the store the next day and meet Saumya. Ms. Kakkar was
not in favour of visiting the store again the next day. Therefore, initially, she argued, but after that, she
agreed to exchange the trouser. Still, Ritvik avoided exchange obligation and asked Ms. Kakkar to meet
Saumya in all cases.
However, Ritvik refused to commit for return or exchange and kept asking her to meet Saumya. All this
irritated Ms. Kakkar and she raised her voice, which had drawn the attention of other shoppers too. She
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was surprised to see that a renowned store did not have a single capable person who could help her
out. Ritvik was trying to calm her down, but she got annoyed and left the store throwing the trouser
and loyalty card on the floor and declaring that she would never visit the store again. Ritvik was aware
that the store had lost a valuable and loyal customer. He also felt helpless and frustrated as he was not
allowed to make any decision without Saumya’s consultation.
Saumya’s promotion did not change her attitude towards her job and work style. She still worked late at
night. She just added responsibilities and additional work to her promoted job role. She even did not trust
to delegate work to her subordinates. In another incident, Saumya lost a great opportunity of expanding
the existing business as she was busy in settling a customer’s complaint herself and forgetting that she
had a meeting with a senior official from Techtronic Electronics who wanted to discuss his company’s
plans of running a promotional event in association with MFSA. The senior official waited for so long
for Saumya, but she was busy in handling a task which any AM could have easily handled. Saumya was
in shock due to the lost opportunity. Even she was confused that she helped subordinates by working
longer, working more and working harder.
Source: www.icmrindia.org
Questions
1. According to your opinion, was Saumya doing wrong as a leader?
(Hint: Yes, because she kept all rights with herself.)
2. What should Saumya have done to rectify the situation?
(Hint: She should have delegated the responsibilities to AMs and made them learn decision making.)

1. List and explain at least three important leadership theories?
2. Explain the various types of leadership styles.
3. What is negotiation?
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1. Leadership is not only about setting the agenda of work. It also deals with identifying problem areas,
taking initiatives for change, and making improvements in the current organisational systems.
There are numerous leadership theories that provide information about effective leadership. Refer
to Section Leadership Theories
2. Leadership style shows leader’s competencies, skills, attitude, talents and philosophies. Different
types of leadership styles that can be adopted by leaders include autocratic style, democratic
style, laissez-faire style, bureaucratic style, charismatic style, directive style, supportive style and
situational style. Refer to Section Leadership Styles
3. According to Kavita Singh, Negotiation is a process by which two or more parties each with its own
goals and perspectives coordinate areas of interest through concessions and compromise to reach
an agreement and take the joint decision about areas of common concerns in a situation in which
neither side has nor wants to use power. Refer to Section Negotiation
 https://www.arabianjbmr.com/pdfs/RPAM_VOL_3_5/6.pdf
 https://invoicebus.com/blog/leaders-need-negotiation-skills/
 https://theuncommonleague.com/blog/2018122/11-skills-shared-by-expert-negotiators-and-great-
leaders
 Discuss what is a leadership grid.
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UNIT
09 Presentation Skills
Names of Sub-Units
Concept of Presentation, Importance of Effective and Engaging Presentations, Presentation Delivery

Methods: Based on the Audience, Based on the Environment, Based on the Message being Delivered,
PowerPoint Presentations
Overview
The unit begins by explaining the concept and importance of presentations. The unit further discusses
the importance of effective and engaging presentations. Towards the end, the unit explains the
features of PowerPoint presentations and the qualities of a presenter.
Learning Objectives

 Explain the concept of presentation
 Discuss how to deliver an effective presentation
 Describe different presentation delivery methods
 State the importance of PowerPoint presentations
 List the qualities of a presenter
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Learning Outcomes

 Explore how to deliver creative ideas convincingly to the audience
 Identify how to keep the audience engaged which is essential as a leader to influence others and
customers
 http://psydilab.univer.kharkov.ua/resources/ucheba/softskills/chapter%205.pdf
9.1 INTRODUCTION
Almost every kind of business transaction involves a certain degree of presentation ranging from
convention speeches, keynote addresses, reports to the board of directors, team meetings, business
conferences, etc. Depending on the kind of presentation, the objective of the presenter and the
presentation may vary. However, irrespective of whether the presenter aims to motivate, enthral, entice,
deliver facts, provide data, or influence behaviour; effective communication skills are crucial to every
presentation.
An individual may/may not have perfect command of the language to deliver an effective presentation.
People with good language skills also find presenting difficult. This is because presenting is not limited to
knowing the language alone but requires other skills as well. The most important aspects of a successful
oral presentation include the following:
 Having a firm idea of what the audience already knows
 Rehearsing the presentation before delivering
 Explaining the structure of the presentation to the audience before beginning
 Communicating the main ideas clearly
 Dealing effectively with questions
Effective presentation skills are acquired through experience. Even the most successful professionals
may find delivering speeches or presentations intimidating. And oftentimes, these individuals have
other people helping them draft what to say or design PowerPoint presentations on their behalf.
Considering the limited resources that your federation may have, this extra help may not be possible.
So, it may be entirely up to you to create effective presentations and make a positive first impression.
The effectiveness of any presentation is 20% what you say and 80% how you say it. So, the key is to
approach the process from a step-by-step strategic approach. With simple techniques, you can take
complex or high-volume information and condense it into a presentation that is easy to understand and
accomplishes its desired impact.
9.2 CONCEPT OF PRESENTATION

Presentations, like reports, are a way of communicating ideas and information to people. However, the
difference between the two is that in the case of a presentation, the speaker (presenter) makes a face to
face contact with people which allows for immediate interaction between all the participants.
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UNIT 09: Presentation Skills JGI JAIN
A report can be defined as the orderly presentation of the outcome of a research that seeks facts and
interprets them into constructive ideas and suggestions. A report is generally based on research that
finds, develops or substantiates information. When all relevant information and facts are collected, they
are organised and presented in a report developed as the specific requirements. A presentation can be
defined as a speech or talk in front of an audience by way of which a new product, idea or piece of work
is exhibited. Although a presentation is created in the same manner as a report it has an additional
element that makes it more interactive, which is the human element.
Businesses and professional firms use presentations to inform, educate, motivate and persuade internal
and external audiences. They build presentations into sales, training and internal communication
programs, using the power of words and images to engage their audience and retain attention. A
presentation provides a framework for communicating information about products, services or
companies in a structured way. The presentation should include bullet points or prompts to remind
the presenter to emphasise the most important points. A well-crafted presentation also demonstrates
professionalism and helps reinforce an organisation’s corporate image. Some of the advantages of a
presentation are as follows:
 Presentations are face-to-face: One of the main advantages of a presentation is that it allows for
face-to-face contact with the audience. Personal contact helps in building trust and strengthening
relationships. For example, the use of presentations to boost sales has been found to improve sales
figures effectively.
 Presentations encourage audience engagement: An important aspect of presentations is that it
helps in engaging the audience allowing more interactions. Striking images, graphics, quotations
or figures used in a presentation can hold the audience’s attention. Similarly, clear bullet points
or summary text helps the audience in following the presentation’s logic. The theatrical impact of
a presentation creates a greater impression on the audience compared to an individual making a
point through simple conversations.
 Presentations offer flexibility: A major advantage that presentations have over other forms of
communication is that it offers the flexibility of modifying the content whenever needed and easy
to incorporate new information. In addition to this, the same presentation can be modified to suit
different audiences. For example, in case a person prepares a presentation on company capability to
prospects in different market sectors, he/she can modify the same by incorporating sector-specific
content to suit each client. Therefore, presentations offer more flexibility compared to a printed
medium, like corporate brochures and newsletters.
 Presentations allow consistency: Presentations can be created following a standard pattern which
helps in ensuring that different people in an organisation consistently communicate information.
 Presentations are versatile: Another important advantage of presentations is that they are
versatile. Presentations as a communication tool can be used in one-to-one meetings when viewed
on a laptop or tablet. The same presentation can be used as a central element for a conference using
a projector and screen. Presentations can also be made available on the Internet for viewing during
a Web conference.
9.2.1 Importance of Effective and Engaging Presentations

Effective presentations help an organisation reduce ambiguity and provide accurate information. For
example, businesspresentationscanbeusedtoconfirmanorganisation’sfinancialviability, communicate
the roles and responsibilities of the managerial staff and acknowledge the accomplishments of valued
employees. Depending on the overall purpose and the audience for which they are intended, presentations
can take distinctive characteristics. There are five main purposes of a presentation, which are to:
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 To inform: The main purpose of a presentation is to inform the audience about a certain fact, data,
updates, etc. These presentations provide ideas, opinions and facts for the benefit of a specific
audience. For example, business presentations, such as quarterly accounting reports and project
reports are used to communicate information to employees.
 To instruct: After informing the audience, the next step is to instruct them on the methods
and procedures regarding the same. This is when instructional presentations are used. These
presentations have more content than informative presentations are usually used for teaching,
giving orders or specifying directions.
 To celebrate/entertain: Some business presentations are used to celebrate some aspects of the
business. For example, presentations can be given during dinners and events at the workplace,
goodwill speeches on significant dates, inspirational speeches on a memorial and congratulatory
messages. These presentations are used to showcase an individual’s commitment to his/her
organisation and co-workers as well as demonstrate the organisation’s commitment to its employees
and ideals.
 To motivate: Presentations areoften used as motivational tools in schools, universities, workplaces,
etc. The purpose of such presentations is to motivate the audience to take a specific action.
Motivational presentations are based on the persuasive skills of the presenter. These presentations
focus on igniting the emotions and feelings of the audience. For example, sales managers use
motivational presentations during the annual sales meeting to encourage the staff.
 To persuade: Many presentations serve the primary purpose of persuading an audience to accept
a particular idea/belief or make a certain choice. For example, persuasive business presentations
can exist internally, such as when a manager seeks to convince the staff for cross training, and
externally, such as when one organisation presents its products to another organisation. Such
presentations convincingly provide credible information.
The important elements of a presentation are:
 Introduction: The first element of the presentation is meant to introduce the topic to the audience,
explaining to them what the presentation is about and setting the context for the delivery of the
information. The speaker should also inform the audience about what they should expect from the
presentation.
 Background information: The next element of a good presentation is giving background information.
The speaker needs to set the context for the new information by making the audience aware of the
previous events, facts, etc., related to the new material. This will help the audience to relate to the
presentation as well as make it more enjoyable and memorable.
 New information: This part of the presentation should contain a specific and clear description of the
new information. The description should have such a framework that the audience can comprehend
the information easily, absorb data and make sense out of it.
 Review of the new information: This part of the presentation would consist of a second review of
the new information. The information should be supported by precise details/evidences, such as
facts, examples, incidences, comparisons, statistics and expert opinions.
 Summary of the information: Finally, the presentation should end with a summary of all the
information showing how it would affect the audience. For example, if the presentation is about
entering a new market, then the summary should include answers to questions like:
 Why the new market?
 What will we gain?
 Job security?
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Most presentations follow a series of queries from members of the audience. The presenter should practise
answering some obvious questions beforehand so that this session does not prove an overwhelming
task.
9.2.2 Using Visual Aids

Visual aids are items of illustrative matter, such as a film, slide or model, which supplements written
or spoken information and makes the presentation easy to understand. For example, whiteboards, flip
charts, over-head projector (OHP), slides, videos, PowerPoint, hand-outs are used to complement the
content of a presentation.
They help in emphasising the main points and multiply the audience’s level of understanding. The
main purpose of a visual aid is to reinforce the message, clarify points and maintain the interest of the
participants. Visual aids encourage the use of gestures and movement by the presenter which helps in
reinforcing the control that a speaker might want to maintain over the presentation. Therefore, the use
of visual aids is mutually beneficial to the audience and the presenter, equally. The advantages of using
visual aids in presentations are as follows:
 Visual aids add impact and interest to a presentation.
 Visual aids enable the presenter to increase the audience’s understanding and retention level.
 Use of pictures, graphics, etc., to communicate concepts or ideas help in more retention of the
message.
Types of Visual Aids

Some of the common visual aids used in presentations and their usage are as follows:
 Models: These can be used as substitutes to provide better examples of reality to the audience. For
example, using a globe and sun model to explain the concept of eclipses to students.
 Graphs: These are used to explain comparisons between different quantities figuratively. For
example, bar graphs, line graphs and pie graphs are used to visualise statistics to the audience.
 Maps: These are used to show geographic areas or other locations.
 Tables: In these, data is represented using columns and rows for comparison of facts. However, too
many tables can overwhelm audience members with data.
 Photographs: These are suitable tools to stress a point or to explain a topic when the real object is
not physically present.
 Drawings or diagrams: These are created to specify particular points in case the photographs are
too detailed and not able to highlight the more significant parts. However, unprofessional drawings
or diagrams should be avoided completely.
It is important to note that the audience needs to be able to see the presenter as well as the visual aids. It
is important to involve every member of the audience by choosing a good layout of the room.
9.3 DELIVERING AN EFFECTIVE PRESENTATION

The most crucial aspect of delivering an effective presentation is that the speaker should appear
confident and the speech should look effortless. As a general observation, most individuals need
considerable time and practice to deliver before an audience confidently. Presentations are a source
of anxiety for most individuals. Anyone who has delivered a speech in front of an audience must have
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experienced butterflies in the stomach. However, being well prepared before delivering can reduce these
feelings considerably and ease apprehension. There is number of ways to overcome feelings of anxiety,
stress, stage fright before the presentation to appear confident in front of the audience. Following are
some ways to deliver an effective presentation:
 Relaxation: Speakers need to practise control by breathing slowly and deeply and reducing the
tendency to get over-excited. Allowing the jaw muscles to relax in between help in improving
articulation, diction and pronunciation.
 Practise the speech out loud several times: Practising the speech ahead of time would help in
memorising the key points allowing smoother transitions between segments of the presentation.
 Pause intentionally and repeat key words to stress key points: Pausing in between key information
is useful in creating impact and it also allows the speaker enough time to rearrange his/her thoughts.
 Use of notes: The speaker should carry notes on the main concepts of the presentation but should
not read from them as it would create an impression of uncertainty. Also, the presenter should not
sound as if reading scripted material and distracts the audience from listening to the message.
Avoid sounding scripted. It is useful to keep the notes to the point, underline key words and use notes
only for assistance.
 Avoid signs of nerves during your speech: The presenter should remember that he/she is a source
of new information for the audience as this would help in keeping calm and avoid anxiety. Presenters
should avoid the following signs that display anxiety:
 Fidgeting: For example, touching the face, playing with jewellery and running hands through
the hair.
 Pacing: For example, walking randomly in a panicky manner and clumsily handling the visual
aids.
 Hands shaking: Hands and fingers tend to shiver when nervous. It is best to avoid displaying the
same to the audience. Use of mobile phones, tablets instead of sheets of paper for keeping notes
will make the shakiness less apparent.
An effective presentation is based on the three most important elements, which are:
 The presenter: A good presenter needs to have decent delivery skills, which are crucial in any form
of communication, especially during public speaking. Using powerful body language, making eye
contact and using open gestures, will help in reinforcing the points and make the presentation
effective.
 The content: Great content starts with information that your audience will find relevant, interesting
and perhaps even entertaining. A good content should be readable, engaging and consistent.
 Voice delivery: Efficient use of voice can make a presentation interesting and keep the audience
engrossed. This can be achieved by practising basic qualities of vocal expression which includes
the power, pace, pitch and use of pause to attain credibility and helps the audience to focus on the
message.
9.3.1 Presentation Delivery Methods

Presentations are an excellent medium to discuss innovations, work in progress, report and share
new ideas. A good presentation is centred around the main theme, presents relevant information and
stimulates thought. Apart from that, a presentation can be effective if it is delivered using an appropriate
method. The delivery method is selected based on audience, environment and message being delivered.
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Based on the Audience

The first and most important rule of presenting work is to know the target audience. Thus, it is important
to understand the needs of the audience. By identifying the level of the audience, one can provide an
appropriate amount of detail when explaining work. It can be decided whether particular technical
terms and jargons are appropriate to use and how much explanation is needed for the audience to
understand research. For example, NMR, HMQC and NOESY might be fine to use without definition for
a room full of organic chemists, but one might want to explain these terms to other types of chemists or
avoid this level of detail altogether for a general audience.
Based on the Environment

Different types of audiences create different types of environment. For example, presentations targeted
to the top management are formal, while orientation presentations given to middle or low level
management are given in conversational settings.
Based on the Message being Delivered

Presentations can be daunting if the content is not easy to comprehend by the audience. Cluttered slides
can distract the audience from focusing on the main idea. Therefore, presentations should be simple
and uncluttered limited to one or two font styles. The use of capital letters should be limited as they are
more difficult to read. The presenter can use complementary colours with high contrast to reduce strain
in the eyes of the audience.
9.4 POWERPOINT PRESENTATIONS

The use of Microsoft PowerPoint, a computer-aided tool, is important in making presentations. It is
the most powerful and stimulating audio-visual aid to create presentations. Most people have used
PowerPoint at some point in their education or career. It’s fairly easy to pick up the basic functions of
the program for simple presentations, and information can easily be conveyed through bullet points
and images on various slides. Most people do not delve into the broader functionality of the program
though, but those interested in business management look into everything PowerPoint has to offer.
The useful program is often used during business meetings and proposals to persuade others of a
company’s merits, among other uses, so knowing how to manipulate the program is a great business
advantage. Receiving a Microsoft certificate in PowerPoint training would give any employee the ability
to create compelling presentations for any occasion.
Presentations are not the only useful business tools created in PowerPoint. The program can be used for
all types of important projects. For example, Small Business Computing points out that the program can
be used to make videos for clients and employees. These videos can also be uploaded onto YouTube and
distributed over social media. For start-ups and small businesses, this is a simple, cost-effective way to
create engaging content for customers and investors.
Important business materials can also be created in this program. Brand style guides are often
composed in PowerPoint because users can create visually appealing instructions for distributors to flip
through. Slideshows are also perfect for trade shows when a business wants to attract viewer attention.
Interesting photos or statistics can help bring potential clients over to a business’s booth.
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Tip for Making a Presentation

PowerPoint is a persuasive tool for businesses to use, but it also has to be managed wisely. It’s easy for a
business meeting to turn boring and fact-filled quickly. The creator of the PowerPoint slideshow has to
keep this in mind when transferring information to the program. The following are the tips for making
effective PowerPoint presentations.
 If the slides are too text-heavy, viewers will get distracted reading the long blocks of wording and
stop listening to the speaker.
 Images should be used to fully capture the audience’s attention.
 A presenter needs to avoid merely reading off the slides and be able to adequately answer all
questions.
9.5 QUALITIES OF THE PRESENTER

Personal appearance is often underestimated when it comes to communication and presentation skills.
While speaking in public, although the person is representing the organisation but is visible to the
audience as an individual. Before everything else, the audience notices the presenter and based on their
perception, the audience makes certain assumptions, both consciously and subconsciously, even before
the speaker has introduced himself/herself. The impact is the result of your body language, voice quality
and choice of words. Visual impact is at least as important as verbal impact. The audience quickly makes
assumptions based on the following qualities of the presenter:
 Facial expressions: An individual can do little to change his facial features but has a considerable
amount of control over his/her facial expressions. Despite the presenter’s mood or personal feelings,
the audience expects a confident, composed and friendly look on the speaker’s face. It is, therefore,
essential that the speaker who is representing an organisation or group conveys a calm, friendly
and professional exterior, despite how he/she may feel inside. Smiling in between the topics and
appearing optimistic will help in getting the audience’s attention. There are seven universally
recognised emotions shown through facial expressions, which include fear, anger, surprise,
contempt, disgust, happiness and sadness.
 Eye contact: The study of eye movement, eye behaviour, gaze and eye-related non-verbal
communication is known as oculesics. Eye contact forms an important part of communication
with an audience, as it leaves a considerable amount of social and emotional information. For
example, eye expressions show interest, attention and involvement with audience members, while
failure to make eye contact can be interpreted as disinterest. Gazing forms a very crucial part of
communication through the eyes. It includes looking at someone while talking and listening. The
duration of gaze, how many times the speaker glances at someone/something, frequency of eye
fixation, pupil dilation, rate of blinking, etc. all form important parts of non-verbal communication.
Apart from cultures that prohibit looking on, eye contact helps in gaining the credibility of the
speaker. Resisting or avoiding eye contact is often considered to be signs of rudeness, inattentiveness
or lack of confidence by most people. Nonetheless, different cultures perceive eye contact differently.
For example, some Asian cultures perceive direct eye contact as a sign of competitiveness, which are
considered inappropriate. In some cultures, as a sign of respect, people lower their eyes. At the same
time, Western cultures, lowering of eyes is often misinterpreted as a lack of confidence.
 Dress code: The attire of the speaker has social significance for the audience and thus forms an
important part of non-verbal communication. Apart from the clothes worn by the speaker, this also
includes things that people wear, such as jewellery, ties, handbags, hats and glasses. The dress of the
speaker conveys non-verbal clues about a speaker’s personality, background and self-confidence.
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An individual’s clothing style is a reflection of his/her culture, mood, confidence, interests, sexual
identity, etc. Careful dressing up is important as clothing may consciously/unconsciously send a
negative message. For instance, messy hair and wrinkled clothes often signify carelessness from
the part of the speaker while a well-dressed speaker demonstrates the importance he/she gives to
a cause.
 Movement and gestures: Kinesics refer to the study of body movement and expression and includes
waving, pointing, touching, slouching, bending, etc. Body movements convey many meanings to the
audience and, therefore, need to be given considerable attention. A gesture refers to visible bodily
actions that send particular messages, mostly used in parallel with words. Movements and gestures
can help in communicating positively with the audience. Some examples of how movements and
gestures support a speaker’s delivery are as follows:
 Bending upper body towards the audience to bridge the space
 Moving purposefully from one side to the other to show a transition from one point to the other
 Crossing your arms to signify expectation of a question from a member of the audience
 Standing still without movement while listening to a question to show interest
However, body movements can also prove distracting when used unnecessarily or repeatedly. For
example, excessive swaying back and forth without purpose may force the audience to follow your
movements only and not the message. A gesture is a form of non-verbal communication in which
visible bodily actions communicate particular messages. Gestures may include movement from any
part of the body. Gestures can be categorised as follows:
 Speech independent gestures: These gestures are based on culturally accepted interpretation
and have a direct verbal translation. For example, a wave for greeting, V for a victory sign.
 Speech related gestures: These gestures are used alongside verbal speech and are used to stress
a particular message. Speech-related gestures are intended to supplement the information
in a message. For example, pointing to an object of discussion and pretending to underline a
message/word.
 Body language: One of the most important factors that affect the outcome of a presentation is
the speaker’s body language. The speaker’s body language should support and enhance the verbal
content of his/her speech. The non-verbal part of any communication is mostly involuntary and,
thus, the speaker needs to make a conscious effort to control the way he/she sits, stands, uses
gestures and mannerisms being used. For example, if the speaker appears nervous or uneasy, his/
her distractions and lack of focus become more pronounced. Awareness of how a person behaves
under pressure, the signals a person unconsciously sends can help in understanding how to avoid
the wrong impression to avoid confusion in the meaning of a message.
 Posture: While addressing an audience, postures account for a considerable amount of non-verbal
messages exchanged between the speaker and the audience. Posture is an important means of
communication that conveys information about interpersonal relations and exhibits personality
traits like self-confidence, modesty and openness. The speaker may display an open or closed body
position. Both these postures are used to communicate different messages to the audience and can
be necessary or unwelcome based on what the speaker wants to deliver to the audience. The two
types of body postures are:
 Open posture: This posture communicates the friendly and positive attitude of the speaker. In
this posture, the feet are spread wide and the head is upright and firm facing the audience. The
important element of an open posture is the speaker’s hands. Displaying relaxed open palms are
signal of open posture.
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 Closed Posture: This posture signals the impression of dispassion, disinterest and unfriendliness.
A closed posture includes arms crossed on the chest, hands clasped in front of the body, crossed
legs, sunken shoulders, etc. Showing the back of hands or clenched fists also depicts closed
posture. Standing firmly but with hands clasped behind the back can also be included in a closed
posture as it may give the impression of concealing a fact or resisting closer contact.
 A presentation can be defined as a speech or talk in front of an audience by way of which a new
product, idea or piece of work is exhibited.
 Businesses and professional firms use presentations to inform, educate, motivate and persuade
internal and external audiences.
 Effective presentations help an organisation to reduce ambiguity and provide accurate information.
 A good presentation is centred around the main theme, presents relevant information and stimulates
thought.
 Presentations can be daunting if the content is not easy to comprehend by the audience.
 A good presentation should make use of relevant and complementary graphics, photos and diagrams
that add depth and meaning to the presentation.
 Visual aids are items of illustrative matter, such as a film, slide or model, which supplements written
or spoken information and makes the presentation easy to understand. For example, whiteboards,
flip charts, overhead projector (OHP), slides, videos, PowerPoint and handouts.
 Before everything else, the audience notices the presenter and based on their perception, the
audience makes certain assumptions, both consciously and subconsciously, even before the speaker
has introduced himself/herself.
9.7 GLOSSARY
 Kinesics: The study of body movement and expression and includes waving, pointing, touching,
slouching, bending, etc.
 Negative body language: A conscious or unconscious expression of grief, anger, nervousness,
displeasure, impatience, boredom or lack of confidence
 Oculesics: The study of eye movement, eye behaviour, gaze and eye-related non-verbal
communication.
 Positive body language: The non-verbal movements and gestures that express interest, enthusiasm
and optimistic reactions to support an individual’s speech
9.8 CASE STUDY: EFFECTIVELY PRESENTING THE BUSINESS CASE
Case Objective
The case study explains how to present business case effectively.
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Karan Sharma, the marketing communications manager of a cosmetic skin laser organisation in New
Delhi felt that the organisation needed a new image. “Other organisations with attractive marketing
strategies were gaining considerable market share despite having an inferior technology,” Sharma said.
He decided to take forward a total rebranding including a new logo, new tagline, new advertisements
and models. He had to present his concept to the new executive team hired to prepare the organisation
for an IPO targeting a 10-fold increase in the marketing budget. Sharma announced, “Marketing was a
vague concept for the executive team. Although they had the realisation that they needed to do it but
were unsure about the tangible effect that a new marketing strategy might have.”
To build up support for his case, Sharma approached the team members of the executive team
individually to enquire about their views on the competitors, what they thought they were doing right,
how they were doing it, what did they feel about his organisation and how the team compared other
organisations with their own organisation’s strategy. These conversations offered Karan Sharma a
roadmap of how he needed to present the recommendations to the new executive team. It allowed him
to tailor his presentation to the team’s suggestions.
He crafted the presentation as a story of each of the company’s primary competitors, showcasing
their branding using visuals-aids to support the information side-by-side along with their marketing
spending and earnings. That analysis not only showed those with the most compelling brands and
integrated marketing support had impressive revenues, but also the most positive performances on the
stock exchange market. The presentation helped in showcasing how a marketing investment plan helps
in increasing revenues and market presence, especially concerning the shareholder value.
Karan Sharma’s presentation resulted in gaining a full funding for the proposed marketing plan for the
organisation. In one year, the organisation achieved consistent sales growth and also came up with a
successful IPO.
Questions
1. Explain how the presentation convinces the new executive team to fund the organisation’s marketing
plan.
(Hint: He tailored his presentation to the team’s suggestions, crafted the presentation as a story of
each of the company’s primary competitors, showcasing their branding using visual aids to support
information, comparison of spending and earnings.)
2. Write a short note on the strategies that Karan Sharma used to prepare and deliver his presentation.
(Hint: Sharma approached the team members of the executive team individually to enquire about
their views and how the team compared other organisations with their own organisation’s strategy.
He prepared a roadmap of how he needed to present the recommendations to the new executive
team. It allowed him to tailor his presentation to the team’s suggestions.)

1. Discuss the concept of presentation.
2. Explain the important elements of a presentation.
3. What are the types of visual aids?
4. Discuss presentation delivery methods.
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5. Write a short note on PowerPoint presentations.

1. Presentations, like reports, are a way of communicating ideas and information to people. However,
the difference between the two is that in the case of a presentation, the speaker (presenter) makes a
face to face contact with people which allows for immediate interaction between all the participants.
Refer to Section Concept of Presentation
2. The important elements of a presentation are:
 Introduction: The first element of the presentation is meant to introduce the topic to the audience,
explaining them what the presentation is about and setting the context for the delivery of the
information. The speaker should also inform the audience about what they should expect from
the presentation.
 Background information: The next element of a good presentation is giving background
information. The speaker needs to set the context for the new information by making the
audience aware of the previous events, facts, etc., related to the new material. This will help the
audience to relate with the presentation and make it more enjoyable and memorable.
 New information: This part of the presentation should contain a specific and clear description
of the new information. The description should have such a framework that the audience can
comprehend the information easily, absorb data and make sense out of it.
 Review of the new information: This part of the presentation would consist of a second review
of the new information. The information should be supported by precise details/evidences, such
as facts, examples, incidences, comparisons, statistics and expert opinions.
 Summary of the information: Finally, the presentation should end with a summary of all the
information showing how it would affect the audience. For example, if the presentation is about
entering a new market, then the summary should include answers to questions like:
 Why the new market?
 What will we gain?
 Job security?
Most presentations follow a series of queries from members of the audience. The presenter should
practise answering some obvious questions beforehand so that this session does not prove an
overwhelming task. Refer to Section Concept of Presentation
3. Presentations are an excellent medium to discuss innovations, work in progress, report and share
new ideas. A good presentation is centred around the main theme, presents relevant information
and stimulates thought. Apart from that, a presentation can be effective if it is delivered using an
appropriate method. The delivery method is selected based on audience, environment and message
being delivered. Refer to Section Concept of Presentation
4. The delivery method is selected based on audience, environment and message being delivered. Refer
to Section Delivering an Effective Presentation
5. PowerPoint at some point in their education or career. It’s fairly easy to pick up the basic functions
of the program for simple presentations, and information can easily be conveyed through bullet
points and images on various slides. Most people do not delve into the broader functionality of the
program though, but those interested in business management look into everything PowerPoint has
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to offer. Refer to Section PowerPoint Presentations
 https://courses.lumenlearning.com/boundless-communications/chapter/effective-visual-delivery/
 https://westsidetoastmasters.com/resources/powerspeak/ch04.html
 Using the Internet, pick up a presentation on a company’s promotion/branding and describe the
elements of the presentation.
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UNIT
10 Team Building
Names of Sub-Units
Meaning of Team Building, Features and Roles of a Team,Characteristics of High Performing Team,
Tuckman’s Stages of Team Development, Forming, Storming, Norming, Performing, Adjourning,
Team-building through Management Games, Team Handling, Leadership Resourcing and Team
Development, Work Teams, Cross-functional Teams, Virtual Teams, Self-managed Teams, Why Teams
Fail?
Overview
The unit begins by explaining the meaning of team building, its features, roles of a team and the
characteristics of a high performing team. Thereafter, the unit describes Tuckman’s stages of team
development, i.e., forming, storming, norming, performing and adjourning. In the later sections, the
unit talks about team-building through management games, team handling, leadership resourcing,
team development, work teams, cross-functional teams, virtual teams, self-managed teams, and why
teams fail.
Learning Objectives

 Explain the significance of team building
 Describe the different stages of team building
 State the importance of different management games
 Discuss different types of teams
 List the reasons for team failure
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Learning Outcomes

 Explore the importance of team building
 Identify the functions of different teams
 Recognise the reasons why do teams fail
10.1 INTRODUCTION
Nowadays, organisations carry out most of their work using the synergies of teams. As the formation
of a team empowers employees in various ways, greater importance is being given to team-building
and teamwork. When a definite number of employees are selected and assembled under a formal
team, they are expected to perform particular tasks or projects leading to the achievement of certain
organisational goals. At times, it becomes necessary to form teams because teams can achieve what
individuals cannot.
10.2 MEANING OF TEAM BUILDING

A team can be referred to as an official group consisting of inter-reliant individuals. A team is
responsible for the attainment of the mutual goals of an organisation. The concept of teams gained
significance in the 1970s. However, modern-day teamwork is blended into the profit-making activities in
business organisations and in general, in organisational culture. A team is formed to obtain collective
performance wherein the team members share accountability both individually and mutually as a
group. Therefore, organisations forge teams to bring together groups of people with complementary
skills and interests to strive towards a common goal. Some of the reasons for the formation of teams
are as follows:
 To provide voluntary support to all its team members
 To encourage mutual decision-making as a team
 To form an environment of sustenance and trust among team members
 To seek innovative suggestions to problems from team members
 To provide systematic and consistent feedback to team members for increasing their performance
 To facilitate problem-solving and provide new opportunities among team members
 To accomplish organisational goals through the commitment of team members
10.2.1 Features and Roles of a Team

A team is important for attaining organisational goals. A team refers to a group of individuals who
have been brought together to perform a specific task and contribute in achieving organisational goals.
Teams can be temporary, i.e., they may last for a week or a few years depending upon the need. Once
the teams are formed, they are allocated a particular task or project that has to be completed within
a specified timeline. Behavioural patterns of individuals are significant, and thus need to be studied
cautiously to construct an effective team culture by forming the right combination of team members.
For example, a team of five people should consist of two technical, one managerial, one social and one
unskilled team member.
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The features of a team are discussed as follows:

 Sense of unity: Team members come together to attain mutual goals for an organisation which
develops loyalty among them.
 Delegation of work: The work is distributed among the members of the group so that they can
display their potential.
 Increase in flexibility: The ability to tolerate, eagerness to learn and flair of free discussion increase
when individuals from various dissimilar backgrounds collaborate as a team to attain a mutual
goal.
 Improve decision making: There is an improvement in the process of decision making with
streamlined operations within the organisation with an organised structure. Organisations that
form teams facilitate the flow of information and knowledge to different levels, which further helps
in taking business decisions.
 Effective communication at all levels: Teams represent the hierarchical structure within an
organisation in terms of authority, which is clearly defined on the organisational chart. By making
teams, an organisation facilitates communication between employees and interlinked departments
and eliminates the miscommunication gaps.
 Operations are streamlined: Forming teams help organisations streamline their business
operations. Teams are formed based on various units, departments or divisions and the jobs or
responsibilities are assigned along with various business functions and processes.
 Improves employee performance: The overall performance of a team is improved by exploiting the
collective ideas, knowledge and skills of all the members of the team. Team members are well aware
of their roles and responsibilities. This, in turn, makes them aware of how much to deliver and strive
to accomplish organisational goals.
10.2.2 Characteristics of High Performing Team

High-performing teams are composed of individuals with specialised expertise and complementary
skills who are goal-oriented and hyper-focused on achieving clear, outstanding results. Together they
collaborate and innovate to produce work at the highest levels. But building a high-performing team
requires more than just pulling together a group of talented people with the right skills. It requires
careful development and the nurturing of key characteristics, behaviours and best practices.
The following are the characteristics of high-performing teams:
 They have clear goals tied closely to the team and organisational priorities.
 They understand how their work fits into the organisational mission.
 They have defined roles and responsibilities.
 They communicate clearly and respectfully.
 They manage work and deadlines based on priorities.
 They trust and respect each other.
 They celebrate success together and recognise contributions.
 They practice continuous learning.
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10.3 TUCKMAN’S STAGES OF TEAM DEVELOPMENT

Group/team development is described as the process of associating people to work together and
directing their actions towards the fulfilment of a common goal. For example, a group can be built
based on geographical areas such as a separate group for each state in India. Another example can be
a large-scale organisation in which groups are formed based on functionality such as marketing group,
advertising group and promotional group. Interdependency is evident within the group members
for support and help. Therefore, the performance of one group member affects the overall group’s
performance. Figure 1 represents various stages of team development:
Forming
Adjourning Storming
Performing Norming
Figure 1: Stages of Team Development

Let us discuss these stages in detail.
1. Forming: It is the initial phase of group development in which members of a group are introduced to
each other. In this stage, behaviour of individuals is mostly restrained as they intend to know each
other properly.
2. Storming: This is the next stage after forming. This stage is deemed as the most difficult and critical
stage in group building. In this stage, conflict and competition among group members may emerge.
Group members may not agree on group goals, tensions may arise and subgroups within a group
may form as well. To sail through this stage, group members ought to strive to overcome hindrances,
accept individual differences and manage work despite conflicting ideas.
3. Norming: In this phase of group development, differences among group members are sorted out.
Group members begin to acknowledge and appreciate each other’s strengths. To a certain degree,
personal differences are ignored and each individual starts to perform as a unit. During this stage,
there is gradual elevation in group performance level as members learn to cooperate and initiate to
emphasise group goals.
4. Performing: At this stage, the performance of the members of the group reaches its maximum limit.
Consensus and cooperation can be witnessed among group members. There is a lucid, viable group
structure and members are motivated towards the group’s mission.
5. Adjourning: It is the last stage in group development and is only applicable for temporary groups.
In this stage, the group is dissolved as the objective of the group is fulfilled.
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10.4 TEAM-BUILDING THROUGH MANAGEMENT GAMES

Team building activities are conducted for various reasons such as improving communication, boosting
morale and increasing motivation level. Apart from that, these team building activities act as ice
breakers and make team members aware of each other’s strengths and weaknesses, thereby improving
productivity. In a nutshell, it can be said that the overall goal of these activities is to promote better
teamwork in the workplace because great teamwork is the key to a successful business and reputation.
There are four main types of team building activities, which are explained as follows:
1. Communication: To improve communication within the team, the following team activities can be
conducted:
 Two truths and a lie: In this game, each team member is asked to write down two truths and
one lie about themselves on a small piece of paper, but they are not to reveal the answers. Once
everyone’s answers are written down, 10-15 minutes are allowed for open conversation so that
everyone gets to know each other’s personalities to some extent. People can get sneaky and try
to trick others to believe their lies. Once time is up, each team member is asked to read aloud 3
statements to everyone and have the group vote on which one they think is the lie. This game
encourages stronger communication in the office and gives a chance to co-workers to know
each other better.
 Life highlights game: In this game, everyone participates. The participants close their eyes for
one minute and think of the best moments of their lives that have already happened: personal,
professional or life adventures. Once the participants have thought of all those moments, ask
them what one of those moments they would want to relive if they only had 30 seconds left of
their life. They then have to share their last 30 seconds with the group and explain why they
chose it. The first part of this game allows participants to reflect back on their lives, while the
second part enables them to get to know their co-workers’ passions, loves, and personalities.
 Coin logo: Begin by asking all participants to empty their pockets, purses and wallets of any
coins they may have and place them on the table in front of them. Instruct participants to create
their logo using those coins in just one minute. They can also use other materials, such as pens,
notebooks and wallets, to create the logo. Once finished, each participant can explain their logo
to the group. Not only does this activity promote self and mutual awareness, but it also allows
participants to get to know each other on a more personal level.
2. Problem solving/decision making: To improve the problem solving/decision making skills, the
following games are conducted:
 Picture pieces game: This problem-solving activity requires that the leader choose a well-known
picture or cartoon that is full of detail. The picture needs to be cut into as many equal squares as
there are participants in the activity. Each participant is given a piece of the “puzzle” and asked
to create an exact copy of their piece of the puzzle five times bigger than its original size. They
are posed with the problem of not knowing why or how their work affects the larger picture.
Once everyone is finished, ask them to assemble their pieces into a giant copy of the original
picture on a table. This activity teaches participants how to work in a team, all while getting
everyone to understand that each person working on their part contributes to an overall group
result.
 Sneak a peek game: This problem-solving activity requires a set of children’s building blocks. The
instructor will build a small sculpture with some of the blocks and hide it from the group. The
participants should then be divided into small teams of four. Each team should be given enough
building material so that they can duplicate the structure already created. The instructor should
then place their sculpture in an area that is an equal distance from all the groups. One member
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from each team can come up at the same time to look at the sculpture for ten seconds and try
to memorise it before returning to their team. After they return to their teams, they have 25
seconds to instruct their teams about how to build a replica of the instructor’s sculpture. After
one minute of trying to recreate the sculpture, another member from each team can come up
for a “sneak peek” before returning to their team and trying to recreate the sculpture. The game
should be continued in this pattern until one of the team’s successfully duplicates the original
sculpture. The game teaches participants how to problem solve in a group and communicate
effectively.
 The great egg drop: Split the room into two large groups with the task of building an egg package
that can sustain an eight foot drop. A variety of tools and other materials can be provided to
the teams. After the packages have been built, each team must also present a 30-second advert
for their package, highlighting why it is unique and how it works. Then each group will have to
drop their egg using their package to see if it works. Not only does this teach the groups to work
together and communicate, the game also brings them together with the common goal of both
winning the egg drop and successfully creating an egg package.
3. Adaptability/planning: The following games are conducted for facilitating adaptability in the team:
 The paper tower: Each participant is given a single sheet of paper and told that they must
construct the tallest free-standing structure in just five minutes using no other materials. After
the five minutes and a review of the structures, discuss who planned out their structure, who
ran out of time and what could be done differently next time. This exercise teaches participants
the importance of planning, timing and thinking on their feet.
 Road map game: The participants need to be split into two groups with an equal amount of
players in each group. Every group should have paper, pens and a map. The map can be of a
state, the whole country or a specific area. Each group needs a copy of the same map. Instruct
the teams to plan a vacation, which must be planned within certain parameters. Each group
should be given a list of what they have for their trip, how much money they can use, what kind
of car they will have, the size of its gas tank, m.p.g., the price of gas, the beginning and ending
destination and anything else you can think of. Each group should write down their travel
plans and any group that runs out of money or gas will be disqualified. The goal of this building
exercise is to get co-workers working together as team with the common purpose of planning
this trip in 30 minutes.
4. Trust building: Trust is main factor for any team’s success. To build trust, the following activities are
conducted:
 Mine field: This exercise requires set up time and a large, empty area. The leader must distribute
“mines” around the area. These “mines” can be represented by anything. In pairs, one team
member must be blindfolded and cannot talk, while the other can see and talk, but cannot
enter the field or touch their blindfolded teammate. The challenge requires each blind-folded
person to walk from one side of the field to the other, avoiding the mines by listening to the
verbal instructions of their partners. This exercise gives co-workers a chance to work on their
relationships and trust issues, which is why they are paired into teams of two. This activity
gets team members to trust their partner’s directions and teaches them to communicate more
effectively.
 Eye contact: Making eye contact is sometimes difficult for people, as it requires a certain amount
of trust and respect. Some people avoid it, while others simply are not very good at it. For this
activity, have people group into pairs and stand facing each other. The idea is to have them stare
into their partner’s eyes for at least 60 seconds. Neither participant should be wearing glasses or
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sunglasses of any kind. There may be some laughing, as it can feel somewhat awkward during
the first try, but as participants get the hang of it, it should become easier for them to make eye
contact for longer amounts of time. This exercise can help co-workers become more comfortable
and trusting of each other through using eye contact.
 Willow in the wind: This exercise is best suited for co-workers who already know each other
fairly well. One participant must volunteer or be chosen to be the “willow.” The willow must
stand in the middle of a group with their eyes closed, feet together and body upright. They will
perform a series of “trust leans” against the other participants, whose job is to hold up the willow
and pass them around without allowing them to fall or feel frightened as if they are going to
fall. Those who are not the willow must have one foot in front of the other, arms stretched out,
elbows locked and are ready and alert. This will ensure that they will successfully pass the willow
around without any trouble. This technique helps co-workers establish and build trust with each
other in an open and fun environment.
10.5 TEAM HANDLING

Handling a team is an important life lesson learning as it has to do with different people, different
thinking in different mindsets. No one method to manage a team can ever give successful output. Rather
than stating specific hurdles. The following are important aspects of effective team management:
 Understand the need and traits of all team members. One may opt challenging work, freedom of
work and appreciation. To do so, generally, managers refer to the Maslow’s need hierarchy model.
 Geography matters when it comes down to working style and pattern because each land has
a working style, some opt formal approaches, some opt more one on one personal interactions.
Managers need to gel up with people involvedto get work done.
 When it comes to managing team, people are looking for means to connect, looking for the comfort
zone. Managers need to make the team members comfortable so that they can open up and work.
 Managers need to set an example by leading from the front and let team members initiate discussions
in a meeting. Also, they need to provide feedback from time to time.
 Managers should try to create leaders rather than solely focus on the job at hand.
10.6 LEADERSHIP RESOURCING AND TEAM DEVELOPMENT

Leadership is a social process that involves influencing others. The systematic development of good
leaders is fundamental to long-term organisational success, yet organisations often overlook it or
haphazardly undertake leadership development. The following points explain how to develop a team of
leaders:
 Balanced roles: People with different work preferences must gain entry into teams rather than like-
minded people.
 Open communication: Communication should be open, flexible and capable of building trust
between people.
 Handling stress: Working with others in close proximity can itself be stressful. Additionally, tend
to react differently to various work pressures. The key skill which effective teams develop is the
ability to recognise when either individual or collective stress is becoming a problem and to reduce
it together.
 Team choices: These choices must be made explicit. Once the range is known, alternatives could
be ascertained. Suppose someone from the team says, “I think teams are good in principle, but in
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practice they can be a complete waste of time.” Once such a response comes out, the team can begin
to deal with it.
 Team goals: Teams make sense only when there is a common goal, which requires collective action.
Defining the team’s purpose is vital. What are we trying to achieve and why? This, then, gives team
members a focus for their energy and action. It is also helpful to set some short-term goals to create
gains, which sustain the team as it pursues longer-term goals.
 Review mechanisms: For a team’s success, there must be proper control over the team’s activities
and outcomes. A periodical review is needed to keep everything on track. If it is missing, team work
will become just another ‘flavour of the month’.
 Shared leadership: Teams need different forms of leadership at different times. Both the leader and
the members must be willing to exchange roles, depending on the situation.
 Facilitation skills: Ensure that the team meetings are well organised, allowing enough room for all
to express their feelings and thoughts properly.
 Shake off the constraints of the past: All relevant issues affecting the functioning of a team must
be discussed, debated and resolved.
 Consensus: Team decisions need to be based on consensus so that all members can agree with
and be committed to implementing important decisions. Consensus building does not imply 100%
agreement on the part of members. It only indicates the willingness of a member to support the
decisions on reaching a certain stage or point.
10.7 WORK TEAMS

Work teams are those teams where everyone has the same skills but is assigned a specific task. Employees
often form groups that have little to do with completing tasks required by their employers, such as
bowling leagues and parent support groups. Only some groups in an organisation are formed to do the
organisation’s work.
10.7.1 Cross-functional Teams

Cross-functional teams consist of a group of employees from about the same hierarchical level, but
from different work areas who come together to accomplish a task. A task force or a project team comes
under this category. These teams are created to deal with a specific problem and are usually disbanded
when the task is completed or the problem is solved. A team is a formal organisation team usually
relatively long lived, created to carry out specific organisational tasks.
10.7.2 Virtual Teams

Virtual teams are the group of individuals spread across different time zones, cultures, languages or,
ethnicities that are united by a common goal. According to Powell, Piccoli and Ives, a virtual team is
defined ‘as groups of geographically, organisationally and/or time dispersed workers brought together
by information and telecommunication technologies to accomplish one or more organisational tasks’.
Generally, virtual teams are formed for a temporary period to achieve a critical task say, problem
solving or new product development. A classic example is that of the virtual team formed by Whirlpool
Corporation in the late 1990s for its new product development division. The experts from the United
States, Brazil and Italy were brought together to form a virtual team to develop a chlorofluorocarbon-
free refrigerator.
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10.7.3 Self-managed Teams

Also called an autonomous workgroup, it is a workgroup given responsibility for a task area without day-
to-day supervision and with authority to influence and control both group membership and behaviour.
10.8 WHY DO TEAMS FAIL?

The following are some of the common reasons why the teams in an organisation may not be succeeding:
 Lack of vision: An absence of a clear and well-communicated purpose or vision to work will never
allow a team to align themselves for success. Everybody sways in different directions when they do
not know why they are working together, which leads to everyone making different assumptions.
Sometimes a team starts some projects with a vision, but just because team members interpret it
differently, the vision gets muddled.
 Unclear roles: There is nothing worse than not knowing exactly what you are supposed to do. When
roles are not clear, it leaves people struggling to decide what to do next. This leads to team members
focusing on some very primary tasks that help them feel productive, only to find out later that they
had been wasting their time.
Without clearly laid out roles and expectations for each team member, they may take on a task that
does not suit their experience and expertise, which only sets up the team for failure.
 Poor decision making: Most teams miss out on coming up with a good approach for decision-
making and fail in two areas. The first is when they over think decisions and waste a lot of time in
the decision-making process. This leads to not deciding at all.
The second is when they don’t spend enough time thinking through the decisions they make and
get into implementation and thrash mode, only to give up later or making it through bruised and
wounded.
 Fixed mindset: Many teams fail to grow or inspire due to their fixed mindset approach. Most of
them fail because they have already assumed that they could not improve, change or reframe their
situation. This often means that the smartest or the most technical of the teams might get stuck
right at one spot. It is natural for some teams to assume that if they can not solve a particular issue
quickly using their standard approach, there is no solution.
 Lack of resources: Lack of enough or appropriate resources is sometimes one of the major killers
of a team as a whole. Sometimes this is the team’s fault, but most often it is the organisation that
chartered the team in the first place. Not having the right tools, authority and equipment will lead
to a dip in the team morale and their commitment will also ultimately start waning.
 Poor dynamics: Mutual respect is a must for a team to achieve results and maintain cohesion.
Team members need to interact in a productive manner. It is not enough to be an expert in one’s
field. What’s required to get the team dynamics right on track is to be an expert in communicating
with fellow team members. If team members distrust each other or overindulge in other’s work
territories, they cannot achieve results. Team members must feel a sense of loyalty to the team as
well as to each other.
 A team can be referred to as an official group consisting of inter-reliant individuals. A team is

responsible for the attainment of the mutual goals of an organisation.
 The features of a team include a sense of unity, a delegation of work, flexibility, etc.
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 High-performing teams are composed of individuals with specialised expertise and complementary
skills who are goal-oriented and hyper-focused on achieving clear, outstanding results.
 Group/team development is described as the process of associating people to work together and
directing their actions towards the fulfilment of a common goal. Various stages of team development
include forming, storming, norming, performing and adjourning.
 There are four main types of team building activities, namely communication, problem solving,
adaptability and trust building.
 Handling a team is an important life lesson learning as it has to do with different people, different
thinking in different mindsets.
 Leadership is a social process that involves influencing others. The systematic development of good
haphazardly undertake leadership development.
 Cross-functional teams consist of a group of employees from about the same hierarchical level, but
from different work areas who come together to accomplish a task. A task force or a project team
comes under this category.
 Some of the common reasons why the teams in an organisation may not be succeeding include lack
of vision, unclear roles, poor decision making, fixed mindset, lack of resources, etc.
10.10 GLOSSARY
 Maslow’s need hierarchy: A theory of motivation which states that five categories of human needs
dictate an individual’s behavior, namely physiological needs, safety needs, love and belonging needs,
esteem needs and self-actualisation needs
 Cross-functional team: A team that consists of individuals belonging to different functional
departments, but having the same hierarchical level
 High-performing teams: Synergistic social entities that work toward the achievement of a common
goal or goals—short term and long term
10.11 CASE STUDY: TEAMS AT RVAN SV
Case Objective
The case study explains the importance of team-based culture.
‘Rvan SV’ is a wholesale supply and distribution company. The company deals with the selling of
equipment, parts and supplies for recreational vehicles, motor homes, campers, travel trailers and
various other similar vehicles. Repair and servicing of SV vehicles are handled by the service department
of the company. Five years ago, Aditya Roy, the present owner of the company, had purchased the
company from its original owner when the company was making losses. Post-purchase, Aditya changed
the name of the company and worked hard to make it a profitable company from a loss-making company.
Aditya continued running Rvan SV with its three divisional setups that existed since its inception. The
three divisions were wholesale parts and supplies, retail parts and supplies and service. Aditya is also the
CEO and President of the company. He has also appointed a Vice President for each operating division.
In addition, he has also been appointed a Vice President of finance and operations. All divisions and
positions are represented on the organisational chart too. The ‘wholesale parts and supplies’ division
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operates as a warehouse. There are three teams in this division, namely the receiving team (checks
orders for completeness, defective merchandise returns, stocking the shelves, filling orders, etc.), service
parts team and order-filling team for outgoing shipments. The wholesale parts and supplies division
has responsibility for activities associated with receiving, storage and shipping of parts and supplies.
The retail parts and supplies division comprises all functions that are related to parts and supplies
sales at two stores and in the mobile sales trailer too. The personnel of the retail division team comprise
salespeople and cashiers. The warehouse is also used as a showroom for walk-in customers. So, retail
salespeople also worked in the warehouse.
The service division team comprises one scheduler, service writers, lead technicians and mechanics. The
service division also consists of the collision repair team at the main store and the service team at the
satellite store. The collision repair team has two service writers who have special expertise in collision
repair and insurance regulations. Two drivers who move SVs around the “yard” also work in the service
division.
The finance and operations division handles all monetary aspects of the business. Its group members
comprised personnel handling accounts payables and receivables, cash management and payroll. In
addition to this, one person to take care of all of the traditional personnel functions was also included.
Rvan SV has been following a conventional hierarchical organisational structure. Aditya has worked
hard to develop good work ethics among old-timers and younger employees. Post purchase of the
business, Aditya also introduced new, modern and employee-centred human resource policies. As Aditya
bought the company, he practically applied good management, marketing and cash management
principles to make the company a profitable company. Though this was not the only single business
in town, it has competitors too but the company had a good local following. It was about three years
ago that Aditya noticed that there is a change in the nature of the business he was doing. Firstly, he
noticed that the countrywide retailers/competitors were moving into town. The competitors had large
warehouse-type stores and used a discount-pricing strategy. The competitors’ large retail stores had
the advantage of allowing volume purchasing at lower prices from manufacturers as they had large
stores essential to store and shelve large inventory. Aditya with only two stores was not getting such
low prices from manufacturers. He also noticed that the lowest price shopping is the main aim of the
retired people and they also valued good, friendly customer service. Shopping through catalogues for
recreational items also seemed to be trending nationwide. Overall, competitors also followed a team-
specific approach in managing stores by delegating the authority and giving responsibility to the teams
of the stores. Aditya also started extending his business and began to develop a wholesale business by
becoming a wholesale distributor and supplier of equipment and parts in the nearby towns, cities and
states. In parallel, the first catalogue for SV parts and supplies, containing all brand names of the parts
and supplies as per category and supplier was also published. The cover page catalogue also had a very
attractive camping scene. The catalogue was a combination of images of attractively displayed items
and various pages full of images of all the possible parts and supplies. Order placing was also made very
easy. It mentioned order placement by phone, mail or fax and accepted several easy payment methods
also. Orders received through distributors and catalogues, both orders were filled from the warehouse
in the main store and standard mail and parcel delivery services were used for the order fulfilment. The
full delivery costs were charged to customers. According to Aditya, the survival of the company so far
was due to his idea of diversification into the warehouse and catalogue business. He also believed that,
through this, he was directly able to compete with national chains.
Even though it is now hardly profitable, Aditya Roy is concerned about competition and changes in
the industry. He was also worried about making monthly instalments he needs to pay on ` 5 million
loan he got from the bank to buy the business in the first place. He also attended several professional
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conferences across the country and read about the latest management techniques. During all this, he
became aware of team-based ideas. He thought to implement the idea of a team-based organisation to
take the employees to the next level of performance and profitability.
Source: http://college.cengage.com/business/moorhead/organizational/6e/students/cases/ch12.html)
Questions:
1. What errors has Aditya Roy already made in developing a team-based organisation?
(Hint: Not defining team responsibilities, decentralising the work responsibilities, etc.)
2. Prepare an organisation chart for ‘Rvan SV’.
(Hint: Hierarchy-wise designations in the chart)

1. What do you mean by the term ‘team building’?
2. Discuss the features and roles of a team.
3. Explain Tuckman’s stages of team development in detail.
4. Discuss team building through management games.
5. What are the aspects of developing a team of leaders?

1. A team can be referred to as an official group consisting of inter-reliant individuals. A team is
responsible for the attainment of the mutual goals of an organisation. The concept of teams gained
significance in the 1970s. However, modern-day teamwork is blended into the profit-making activities
in business organisations and in general, in organisational culture. Refer to Section Meaning of
Team Building
2. A team is important for attaining organisational goals. A team refers to a group of individuals who
have been brought together to perform a specific task and contribute in achieving organisational
goals. Teams can be temporary, i.e., they may last for a week or a few years depending upon the need.
Once the teams are formed, they are allocated a particular task or project that has to be completed
within a specified timeline. Refer to Section Meaning of Team Building
3. Group/team development is described as the process of associating people to work together and
directing their actions towards the fulfilment of a common goal. For example, a group can be built
based on geographical areas, such as a separate group for each state in India. Another example can
be a large-scale organisation in which groups are formed based on functionality, such as marketing
group, advertising group and promotional group. Interdependency is evident within the group
members for support and help. Therefore, the performance of one group member affects the overall
group’s performance. Refer to Section Tuckman’s Stages of Team Development
4. Team building activities are conducted for various reasons such as improving communication,
boosting morale and increasing motivation level. Apart from that, these team-building activities act
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as ice breakers and make team members aware of each other’s strengths and weaknesses; thereby
improving productivity. Refer to Section Team-building through Management Games
5. Leadership is a social process that involves influencing others. The systematic development of good
haphazardly undertake leadership development. Refer to Section Leadership Resourcing and Team
Development
 https://www.teambonding.com/6-reasons-for-team-building/
 https://desktime.com/blog/best-employee-team-building-activities/
 Visit an organisation that is in the construction sector. Ask the manager or the owner about the type
of team formed in this sector and how it is conducive for the organisation.
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UNIT
11 Conflict Resolution
Names of Sub-Units
Meaning of Conflict, Causes of Conflicts, Types of Conflicts, Conflict Resolution Process, Approaches to
Conflict Resolution, Communication Tools, Agreement Frames and Open Questions
Overview
The unit begins by explaining the meaning of conflict, its causes and types. Thereafter, the unit talks
about the conflict resolution process, approaches to conflict resolution, communication tools as well
as the agreement frames and open questions.
Learning Objectives

 Explain the meaning, causes and types of conflicts
 Discuss the conflict resolution process
 Examine the approaches to conflict resolution
 Describe the communication tools for conflict resolution
Learning Outcomes

 Recognise and resolve conflicts
 Develop conflict resolution strategies
JGI JAIN
11.1 INTRODUCTION
Conflict is the perception or feeling by one party that the other party is hindering it from achieving its
goal. Conflicts can be between individuals, groups or organisations. In all these conflicts, almost the
same process is involved, one party wants to achieve a goal and the other party is seen as hindering the
first party from achieving that goal. Conflicts can pose a serious problem in any organisation.
Conflicts can be constructive or destructive. Functional conflicts are mainly constructive, while
dysfunctional conflicts are destructive. Conflicts can be managed by conflict management strategies
and stimulated by conflict management stimulation techniques. Managing conflicts becomes imperative
for ensuring amicable human relations and harmony in an organisation.
11.2 MEANING OF CONFLICT

Conflict may be referred to as a struggle or tussle between individuals with varied needs, ideas, beliefs,
values or goals. Conflicting situations lead to tension and a sense of uneasiness. Conflict can be deemed
as an expression of hostility, negative attitude, aggression and a high degree of misunderstanding.
When an individual communicates with another individual, there may be a difference in perception or
communication gap that causes misunderstanding and results in a situation of conflict.
In every conflict, the individual experiences a certain degree of uneasiness and discomfort. Conflicts
may arise over many issues such as division of revenues and allocation of work. There may also be legal
issues between individuals, departments and managements. Conflicts are inevitable and occur in every
organisation, however, they can be minimised, averted or resolved amicably.
In the words of Pondy, Conflict has been defined as the condition of objective incompatibility between
values and goals; as the behaviour of deliberately interfering with another’s goal achievement, and as
emotionally in terms of hostility. Descriptive theorists have explained conflict behaviour in terms of
objective conflict of interest, personal styles, reactions to threats, and cognitive distortions.
According to David L. Austin, It can be defined as a disagreement between two or more individuals or
groups, with each individual or group trying to gain acceptance of its view or objectives over others.
According to Chung and Meggison, Conflict is the struggle between incompatible or opposing needs,
wishes, ideas, interests or people.
According to them, conflict arises when individuals or groups encounter goals that both parties cannot
attain satisfactorily.
Some sort of conflicts leads to innovative solutions to issues and foster creativity in the organisations. A
conflict may have both positive and negative characteristics, which are discussed as follows:
 It is a universal process found almost everywhere.
 It inherently entails some sense of struggle or incompatibility or perceived difference among values,
goals or desires.
 It can occur owing to the paucity of resources, as in such situations, people compete to obtain the
already scarce resources.
 Conflicts, at times, can be hard to solve once they have begun. Sometimes, conflicts turn into serious
or pernicious situations.
 It is directly related to the activity to prevent others from attaining their goals.
 It may surface due to a clash and difference of ideas or opinions.
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11.2.1 Causes of Conflicts

Numerous reasons may cause conflicts. Some of the mare discussed as follows:
 Poor communication: Improper communication can lead to misunderstandings between employees.
If an employee conveys some incorrect information to others, it can become a reason for conflict
between employees and management.
 Personal characteristics: Personal characteristics, such as behaviour and personality may lead to
individual differences that may cause conflicts.
 Unrealistic expectations: Sometimes, managers assign difficult tasks to employees to perform in
a short time. It is a hard job for employees to complete the typical work within time limits. It can
demotivate employees and become a reason for conflict.
 Change: At times, conflicts arise due to instant changes in procedures, policies and methods of work.
Employees are resistant to adopt new changes, so conflicts can arise.
11.2.2 Types of Conflicts

Conflicts can be classified into functional and dysfunctional conflicts. These types of conflicts can be
explained as follows:
 Functional conflict: It refers to the conflict that supports both individual and group goals, thus
leading to higher performance. When a conflict is favourable and innovative, it helps in improving
the performance of individuals as well as that of the group. Functional conflicts tend to augment the
overall performance of the individual or the team.
 Dysfunctional conflict: It refers to the conflict that leads to a decline in the communication or
performance of a group. It is a conflict that can reduce the performance of a team or group.
Levels of Conflict
Conflicts may arise at any level in an organisation ranging from individual level to organisational level.
Various levels of conflict are discussed as follows:
Organisational-Level Conflict
Organisational-level conflict refers to the conflict which occurs at any hierarchical level of the
organisation. It can be categorised into two types:
 Intra-organisational conflict: It refers to the conflict occurring within an organisation. Intra-
organisational level conflict can be of two types, which are as follows:
 Horizontal conflict: It infers to the conflict between two functional groups that exist at the
same hierarchical level. Such types of conflict can occur due to sharing of limited resources,
interdependency and goal incompatibility. Likewise, goals of a department may clash with the
goals of another department, amounting to goal incompatibility and conflict.
 Vertical conflict: This refers to a conflict between different hierarchical levels such as between a
superior and his subordinates. Vertical conflicts can happen to owe to improper communication
and flawed perceptions.
 Inter-organisational conflict: This type of conflict emerges between two or more organisations.
Organisations hailing from the same sector may resort to unethical practices owing to the rising
competition.
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Group-Level Conflict
A conflict within a group or between two or more groups is the most common type of organisational
conflict. Such type of conflict can be categorised into intra-group conflict and inter-group conflict,
which are explained as follows:
 Intra-group conflict: This type of conflict occurs within a single group or between the members of
a group.
 Inter-group conflict: This sort of conflict arises between two or more groups. Such kinds of conflicts
are often witnessed within an organisation when two departments are vying with each other to
obtain resources whose availability is limited. The conflict between production and marketing
departments and between line and staff are some of its examples.
Individual-Level Conflict
Individual-level conflicts showcase human behaviour that is driven by needs that dictate the activities of
an individual. Before joining an organisation, individuals try to align their needs with the organisation’s
offerings such as salary packages or other fringe benefits. Such conflict may lead to tension, frustration
and unpleasant behaviour in individuals. The individual-level conflict can be bifurcated into two
categories, which are as follows:
 Intra-individual conflict: This type of conflict arises within the individual and is considered
psychological. It can be of two types:
 Role conflict: This type of conflict emerges when an employee gets to know that his/her expected
roles differ from actual roles. It arises as a result of divergent role expectations.
 Goal conflict: In this type of conflict, an individual or a group has to compromise its goals for the
achievement of organisational goals. In goal conflict, individual or group goals are not aligned
with organisational goals.
 Inter-individual conflict: This type of conflict occurs between two individuals. Usually, this conflict
surfaces owing to the dearth of resources or rewards. It can also occur because different people
have different opinions, attitudes, value systems and styles of working.
11.3 CONFLICT RESOLUTION PROCESS

Conflict resolution refers to an act of resolving a pestering issue or problem that exists between two or
more parties. In work places too, disagreements and conflicts occur regularly and are inevitable. The
disagreements are usually caused because different employees have different personalities, goals and
opinions.
Large organisations usually train their managerial and supervising staff in conflict management. The
managers and supervisors must learn how to handle disputes efficiently to ensure that the professional
growth of employees is not hindered.
Conflict management and its handling differ from one case to another and from one organisation to
other and there is no fixed or standardised process for conflict resolution. However, as a base guideline,
managers may follow a five-step conflict resolution process as shown in Figure 1:
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Agreement
Identify solutions
both disputants
Request can support
Solutions
Look beyond
the incident
Define the
source of the
conflict
Figure 1: Conflict Resolution Process

Let us now study these steps of the conflict resolution process.
1. Define the source of the conflict: The person (manager/supervisor) who is trying to resolve the
conflict between two parties must gather maximum information about the cause of the problem.
The manager can collect the required information by asking some questions to identify the cause of
the problem such as:
 “When did you feel upset?”
 “Do you see a relationship between that and this incident?”
 “How did this incident begin?”
While collecting information, a manager or supervisor must give fair and equal chance to both parties
to share their side of the story. This practice usually gives the managers a better understanding of
the situation. In addition, this also proves that the concerned manager is fair and impartial. One
important activity to do while attentively listening to the parties to the dispute is to acknowledge
what they said by using short phrases, such as “I see”, “uh huh” or “Okay”. Such gestures encourage
the person to speak openly with the manager.
2. Look beyond the incident: At times,a conflict becomes enormously large leading to a shouting
match between parties. Many times, such outburst is caused only due to a minor issue and the real
or the underlying cause of conflict is usually insignificant which could be resolved easily. However,
unnecessary anger and outburst of parties make it a big conflict. In such cases, the level of stress
grows to a point that both the parties begin to attack each other personally instead of addressing
the real problem. However, a manager can make both the parties sit together and make them
analyse the whole situation, well beyond the triggering incident to realise the real cause of conflict.
In such cases, the manager should again ask questions such as “What do you think happened
here?”and“When do you think the problem between you first arose?”.
3. Request solutions: After the manager is well informed about the viewpoint of each party, the
manager should make the parties sit across the table and identify how the situation can be changed.
At this stage, the manager needs to ask the parties how can the things between them be bettered. In
such a case, the manager or supervisor is acting as a mediator. As a mediator, it is necessary that
the manager acts as an active listener, is aware of every verbal nuance and can read body language
of people. Here, the most important thing is to ensure that the parties stop fighting and pointing
fingers at each other and starts cooperating so that the conflict can be resolved.
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4. Identify solutions both disputants can support: After listening to the arguments and logical
explanations put forward by both parties, the manager needs to identify and shortlist the solutions
that can be accepted by both parties. After that, point out the merits and demerits of each possible
solution. This helps the parties in accepting a common solution.
5. Agreement: The manager needs to get the parties to reach consensus and shake hands and accept
an alternative identified. The manager should try that the parties can reach a negotiated agreement
which usually involves preparing a contract containing a list of actions and time frames.
11.4 APPROACHES TO CONFLICT RESOLUTION

Depending upon the type, cause and other associated factors, there can be many ways to resolve and
manage conflicts. Some such ways are discussed as follows:
 Increasing resources: It refers to increasing the availability of resources. Sometimes, the paucity
of resources can be a reason for conflict amongst individuals. Improving the resource base can
eradicate the conflict.
 Problem solving: It refers to a method used for resolving conflicts when the conflicting teams are
simultaneously working to reach a mutual solution. Problem solving is the most productive conflict
management technique. Team members trust each other and they know that they need to work
together to achieve a common goal.
 Superordinate goals: These refer to goals the achievement of which requires the joint effort of two
or more parties working towards a common objective. Superordinate goals are effective in reducing
tension between groups as all the groups share common goals.
 Compromise: It refers to a technique in which both parties are required to give up their motives and
think collectively to resolve a conflict. Compromise conflict resolution technique is helpful only when
parties can solve a conflict through collaborating or problem solving.
 Withdraw or avoid: It indicates that conflicts can be avoided or skipped when they are not crucial
enough to be resolved. This technique supports escaping mode. Conflicts can be withdrawn by the
party itself.
 Altering the human variable: It indicates that human behaviour can be altered by using behaviour
change techniques. Human relations training emphasises bringing in a positive change in the
attitudes and behaviours that flare up conflict.
 Authoritative command: It implies that the management can use its formal authority to resolve a
conflict.
 Involving outsiders: In this conflict resolution, conflicts are stimulated by discussions with outsiders
who come from different backgrounds with different working styles, personalities and views from
those of the existing employees.
11.5 COMMUNICATION TOOLS: AGREEMENT FRAMES AND OPEN QUESTIONS

The difference in the ideas and opinions of different individuals results in conflicts. It is essential
to avoid conflicts and improve relations to prevent adverse consequences, such as stress and
anxiety. Communication plays a major role in managing conflict as poor communication results
in misunderstandings and conflicts. In every kind of setting, whether personal or professional,
communication must be clear and precise so that what is said is conveyed to the other individual. In
any kind of conversation, derogatory sentences and words which might hurt the sentiments of others
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should not be used. Also, it is important not to use complicated terminologies as the other person may
not understand them well.
In case of conflict management, two communication tools can be used by the mediators, which are:
1. Agreement frames
2. Open questions
Agreement frames
An Agreement Frame is a communication strategy that helps in redirecting a person’s argumentative
energy rather than attempting to overcome it. Agreement Frames help in reducing resistance during
negotiations. The main effect of using agreement frames is to neutralise criticism.
In business negotiations, an agreement frame may be constructed as follows:
 I respect……..also… ...... X
 I appreciate……..and…….XI agree……..also……..and… ....... X
Where X is our desired outcome
A mediator should not use “I understand” in an Agreement Frame because someone may argue that you
do not understand. However, they cannot argue that do not respect, appreciate or agree.
Some sentence patterns that use Agreement Frames are given hereunder for your reference:
 “I agree, (restate)… and this means …”
 “I agree, (restate)… and what’s more, we should …”
A mediator should not use words, such as “but”, “yet” or “however” in agreement frames. Rather, use
“and” or “also”.
The reason that in agreement frames, you first agree is to keep others open to the conversation while
also including your viewpoint with less resistance.
In personal conflict situations, a person may respond to critical comment, such as “Your dress looks
horrible!” using different kinds of agreement frames as follows:
1. Affirmative agreement frames
 Thank you…
 I appreciate your opinion…
 I agree…
2. Reaffirm the negative comment
 I appreciate that… Finally, someone noticed…
 That’s so nice of you… My poor taste finally paid off.
3. Over emphasise the negative comment/exaggeration response

 You’re right… My dress is uglier than a burnt sausage!
 Thanks… I bought this dress from a beggar!
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4. Defer back to the instigator/redirect response

 Thank you… I am glad I have a choice similar to yours.
 Awesome… Now, we both would look like twins.
Open Questions
To manage conflicts and handle negotiations, a manger should always ask open ended questions.
Open Ended Questions are those questions which cannot be answered with a simple ‘Yes’ or ‘No’. Such
questions are asked when the manager is interested in finding out what other persons are thinking.
Such questions help the manager in revealing their actual thinking.
 Conflict may be referred to as a struggle or tussle between individuals with varied needs, ideas,
beliefs, values or goals. Conflicting situations lead to tension and a sense of uneasiness.
 Numerous reasons may cause conflicts. Some of them are:
 Poor communication
 Personal characteristics
 Unrealistic expectations
 Change
 Conflicts can be classified into functional and dysfunctional conflicts.
 Various levels of conflict are:
 Organisational-level conflict
 Group-level conflict
 Individual-level conflict
 Organisational-level conflict refers to the conflict which occurs at any hierarchical level of the
organisation.
 A conflict within a group or between two or more groups is the most common type of organisational
conflict.
 Individual-level conflicts showcase human behaviour that is driven by needs which dictate the
activities of an individual.
 Conflict management and its handling differ from one case to another and from one organisation
to other and there is no fixed or standardised process for conflict resolution. However, as a base
guideline, managers may follow a five-step conflict resolution process as follows:
 Define the source of the conflict
 Look beyond the incident
 Request solutions
 Identify solutions both disputants can support
 Agreement
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 Depending upon the type, cause and other associated factors, there can be many ways to resolve
and manage conflicts. Some such ways are
 Increasing resources
 Problem solving
 Superordinate goals
 Compromise
 Withdraw or avoid
 Altering the human variable
 Authoritative command
 Involving outsiders
 In case of conflict management, two communication tools can be used by the mediators, which are:
 Agreement frames
 Open questions
11.7 GLOSSARY
 Conflict management: The practice of discerning and managing conflicts in a reasonable,

transparent and efficient manner
 Distributive negotiation: A type of competitive bargaining strategy which is used to distribute fixed
resources among conflicting parties
 Integrative negotiation: A win-win solution in which both parties are mutually benefited
 Negotiation: A process by which parties with different preferences and interests attempt to agree
on a solution
11.8 CASE STUDY: WORKPLACE CONFLICT BETWEEN KAPIL AND FOREMAN
Case Objective
This case study highlights the conflicts in the workplace between Kapil and Foreman.
Kapil, after completing his graduation, started working in the Dexver plant of Western Gyp Company.
Assorted home-improvement products, drywall material and various ready-mix patching compounds
were manufactured in the plant of Western Gyp Company. The small-sized plant employed 30 people
for its manufacturing process. Kapil was into mixing raw materials such as dolomite, limestone,
diatomaceous and sand. For making the ready-mix compounds, mixing was done as per the specific
predefined proportions. The customers buying the products, i.e., ready-mix compounds needed to only
add water in the right quantity at the time of using it. There should be the right quan tity of materials
added in ready-mix compounds so that the customers can have the perfect mix after water addition.
Hence, strict quality control measures were followed in the company.
Many a time, Kapil had arguments with his foreman about the more workforce needed, but it was of no
benefit. One day, a discussion between Kapil and the foreman took place. The discussion was:
Foreman: Kapil, you need to be more careful at the time of mixing the compound. The quality control
inspector named Rohit told me that five of the last seven batches mixed by you were not as per quality
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standards. A remixing of all that stuff is to be done that will cost a lot of money to the company. You are
getting paid for mixing compound batches and you are also not mixing the required 17 batches daily. Is
there some problem?
Kapil: I’m making mistakes because the job is challenging. It is extremely hot on the second floor and I
can do only 14 batches a day instead of 17 because it is not possible to physically complete17 batches per
day. See, I’m the sixth person to have this job in the last seven months, right?
Foreman: Right.
Kapil: Doesn’t it sound awkward and tell you something?
Foreman: Certainly, it tells me that most people today don’t want to do work honestly!
Kapil: I don’t believe what you said. It’s simple to do this job right, 11 batches a day is possible for me.
Also, I’m not so sure about the bad quality of those batches. I know about Rohit’s working style. He is
very picky when inspecting batches because it empowers him over the other workers. As well, he’s just
trying to involve me in all this because he believes that his new car in the parking lot the other day was
scrapped by me.
Foreman: You college guys just know how to argue. I also used to do this job without any trouble. It’s
all due to your laziness. And stop blaming Rohit; he’s been here for 25 years and knows a lot more
about ready-mix compounds than you’ll ever know! Now, get back to work and start pulling your weight
around here.
After one week, the foreman was told by the personnel manager that Kapil had quit the job.
Source: Jerry L Gray and Frederick A Starke, “Organisational Behaviour – Concepts & Applications” (3rd
edition) Charles E. Merrill Publishing Company, Columbus, Page 503-504.
Questions
1. Do working conditions have some impact on conflict aroused between Kapil and Foreman?
(Hint: Yes, extreme heat and more workforce requirements played a significant role in the case
conflict.)
2. How would the conflict in the case have been resolved?
(Hint: Foreman may have motivated Kapil as well as provided him counselling and training required
for doing the job.)

1. Explain the meaning, causes and types of conflict.
2. Describe the general steps used in a conflict resolution process.
3. Explain a few approaches to conflict resolution.
4. What are agreement frames?
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1. Conflicting situations lead to tension and a sense of uneasiness. Conflict can be deemed as an
expression of hostility, negative attitude, aggression and a high degree of misunderstanding. When
an individual communicates with another individual, there may be a difference in perception or
communication gap that causes misunderstanding and results in a situation of conflict. Refer to
Section Meaning of Conflict
2. As a base guideline, managers may follow a five-step conflict resolution process as follows:
i. Define the source of the conflict: The person (manager/supervisor) who is trying to resolve
the conflict between two parties must gather maximum information about the cause of the
problem.
ii. Look beyond the incident: Many times, such outburst is caused only due to a minor issue and
the real or the underlying cause of conflict is usually insignificant which could be resolved easily.
A manager can make both the parties sit together and make them analyse the whole situation,
well beyond the triggering incident to realise the real cause of conflict.
iii. Request solutions: The manager needs to ask the parties how can the things between them be
bettered.
iv. Identify solutions both disputants can support: After listening to the arguments and logical
explanations put forward by both parties, the manager needs to identify and shortlist the
solutions that can be accepted by both parties.
v. Agreement: The manager needs to get the parties to reach a consensus and shake hands and
accept an alternative identified. The manager should try that the parties can reach a negotiated
agreement which usually involves preparing a contract containing a list of actions and time
frames.
Refer to Section Conflict Resolution Process
3. Depending upon the type, cause and other associated factors, there can be many ways to resolve
and manage conflicts such as:
 Increasing resources
 Problem solving
 Superordinate goals
 Compromise
 Withdraw or avoid
 Altering the human variable
 Authoritative command
 Involving outsider
Refer to Section Conflict Resolution Process
4. An Agreement Frame is a communication strategy that helps in redirecting a person’s argumentative
energy rather than attempting to overcome it. Agreement Frames help in reducing resistance during
negotiations. The main effect of using agreement frames is to neutralise criticism. Refer to Section
Communication Tools: Agreement Frames and Open Questions
 https://www.mindtools.com/pages/article/newLDR_81.htm
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 In the negotiations and mediation process, discuss what are opening questions, research questions,
clarification questions, focussing questions, hypothetical questions and directing questions.
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UNIT
12 Indian Ethos
Names of Sub-Units
Meaning of Ethos, History and Relevance of Ethos, Principles Practiced by Indian Companies, Role of
Indian Ethos in Managerial Practices, Management Lessons, From Vedas, From Mahabharata, From
Bible, From Quran, From Kautilya’s Arthshastra, Indian Heritage in Business Management, Production
and Consumption, Work Ethos, Values for Indian Managers, Ethics vs. Ethos, Indian Management vs.
Western Management.
Overview
The unit begins by explaining the meaning and relevance of ethos followed by principles practiced
by Indian companies. Thereafter, the unit discusses the role of Indian ethos in managerial practices
and the management lessons learned from the Vedas, the Mahabharata, the Bible, the Quran and
from Kautilya’s Arthshastra. After that, the unit will discuss Indian heritage in business management,
production and consumption, work ethos, values for Indian managers and the difference between
ethics and ethos. Lastly, the unit covers Indian management and Western management.
Learning Objectives

 Explain the meaning and relevance of ethos
 Discuss the principles practiced by Indian companies
 Describe the role of Indian ethos in managerial practices
 Explain Indian heritage in business management
 Differentiate between Indian management and western management
JGI JAIN
Learning Outcomes

 Understand Indian ethos in the context of modern Indian management practices and business
strategies
 Apply the management lessons from Vedas and Mahabharata in organisational activities
12.1 INTRODUCTION
Ethics is a branch of philosophy. The study of ethics is related to the relative concepts of right and wrong.
The ethics of individuals or entities helps them in deciding between good and bad. The beliefs, ideas and
attitudes that are held dear and practised by a group of people or community are known as ethos.
India is considered a pious land with an extended history. During thousands of years, various texts and
scriptures have been developed by the then economists, sages, rulers and wise people. Scriptures and
epics, such as Upanishads, Vedas, Mahabharata and Ramayana, carry a large amount of knowledge
which (has been in past and) can be analysed to extract or derive important lessons that can find
application in management. Values, beliefs, norms and standards are certain other concepts which
need to be studied alone and linked to the concept of ethos and ethics.
12.2 MEANING OF ETHOS

Ethos is a Greek word that means ‘character’. This word is used about the guiding beliefs and ideals that
are associated with individuals, communities, countries or ideologies.
Aristotle, in his pioneering work on the means of persuasion, described that a writer may persuade his
audience by using three types of rhetorical appeals, namely ethos, pathos (emotion) and logos (logic).
Ethos is one of these three Aristotelian appeals.
Ethos refers to those appeals that influence the ethical reasons due to which the audience may believe
the arguments put forward by the author. Ethos is considered to be involved when a writer or a speaker
constructs his arguments based on ethics or his credibility.
For example, ethos is said to be involved in an ex-serviceman of the Indian Army puts forward the need
for upgrading the training standards used for training new soldiers or advises that the government
should provide the Army with advanced weapons because the rival countries have already acquired
them.
12.2.1 History and Relevance of Ethos

Oxford defines ethos as “The characteristic spirit and beliefs of community/people”. The ‘ethos’
distinguishes one culture from another. Ethos is extremely important because it is the foundation on
which the culture of any country is built.
Indian ethos has been formed as a result of contributions of various sacred texts and scriptures, such as
the Vedas, the Ramayana, the Mahabharat, the Bhagwad Gita and Upanishads.
In India, everyone is aware of the two basic universal truths of life which have been in the knowledge of
the society since Vedic times as follows:
1. The essential infinitude and divinity of all souls
2. The essential oneness and solidarity of the universe and all life
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UNIT 12: Indian Ethos JGI JAIN
12.3 PRINCIPLES PRACTICED BY INDIAN COMPANIES

The major business ethos and principles practiced by Indian companies are as follows:
 Principle of harmony: Most individuals in India are taught to remain calm and avoid any conflicts
and disputes as far as possible. The majority of the population in India is guided by a set of moral
conducts and principles. Companies, too, follow the principles of avoiding conflicts and harmoniously
engaging in business.
 Principle of integrity: Indian companies try to maintain their integrity in all their operations and
business conduct.
 Principle of justice: Indian companies, more or less, follow the principle of justice and they prefer
to reward appropriate behaviour and hard work and punish inappropriate behaviour and work
shirkers.
 Principle of non-violence: Indian companies try to follow the principle of non-violence and protect
themselves from any form of violent strikes, lockouts or any unnecessary or avoidable conflicts. The
companies try to resolve all employee and labour issues by paying them fairly and avoiding any
controversial issues.
 Principle of reward: Indian companies constantly monitor and appraise the performance of their
employees. The companies usually encourage and reward the employees who perform well. It can,
thus, be considered that companies monitor the activities of individuals. Rewards help in cultivating
a spirit of higher productivity among individuals.
12.3.1 Role of Indian Ethos in Managerial Practices

Indian Ethos of Management (IEM) comprises a set of values and practices that the Indian culture can
contribute to service, leadership and management. These values and practices are originated from
Sanatana Dharma and are influenced by different elements of Indian philosophy. As per IEM, a peaceful
personality helps in drawing out solutions from inside. In the organisational context, such direction
inside managers helps them look at the perceived problem imaginatively. It prompts a more rational
and complete understanding. The remarkable thoughts and considerations of IEM uncovered in India’s
old sacred writings are:
 Atmano Mokshartham Jagat Hitaya Cha: All work is an open door for doing well to the world and,
thus, gaining materially and spiritually in our lives.
 Archet Dana Manabhyam: Worship individuals with material things as well as by demonstrating
admiration to their enterprising divinity within.
 Tesham Sukhm Tesham Shanti Shaswati: Infinite happiness and infinite peace come to them who
see the Divine in all beings.
 Paraspar Devo Bhava: Regard the other individual as a perfect being. Every one of us has a similar
awareness, however, our packages and containers are unique.
 Atmana Vindyate Viryam: Strength and motivation for excelling in work originate from the Divine,
God inside, through prayer, spiritual reading and unselfish work.
 Yogah Karmashu Kaushalam, Samatvam Yoga Uchyate: He who works with quiet and even mind
accomplishes the most.
 Yadishi Bhavana Yasya Siddhi Bhavati Tadrishi: As we think, so we succeed, so we progress towards
becoming. Attention to means guarantees the end.
 Parasparam Bhavatantah Shreyah Param Bhavapsyathah: By mutual cooperation, regard and
fellow feeling, every one of us appreciate the highest good both material and spiritual.
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12.3.2 Management Lessons

Our country India is a land of diversity having an elaborate history. People of India have been living
together peacefully even though they follow various religions, belong to varied cultures, speak different
languages and dialects, hold different beliefs and come from different social and economic backgrounds.
India holds a treasure in the form of old scriptures which include the wide philosophical traditions of
Ancient India. These scriptures have been analysed by various management experts and they believe
that these scriptures can serve as a guide to effective ethical management and business practices.
In modern times, there exists cut-throat competition among businesses and all the businesses seem to
be driven by profit motive only. In such an environment, the scriptures and other ancient texts of the
Indian subcontinent serve as an excellent source to guide individuals, professionals and businesses
on ethics and management. Klaus K. Klostermaier is a prominent researcher, famous for his research
related to Hinduism. According to Klostermaier, India has been famous for its wisdom and thoughts
since time immemorial. He also stated that the ancient Persians, Greeks and Romans were eager
to learn from its sages and philosophers. When, in the eighteenth century, the first translations of
some Upanishads and the Bhagavad Gita became available to the West, European philosophers
rhapsodised about the profundity and beauty of these writings. Here they encountered a fusion of
philosophy and religion, deep wisdom and a concern with the ultimate that had no parallel in either
contemporary Western philosophy or Western religion. Indian philosophy is highly sophisticated and
very technical and surpasses both in volume and subtlety.
Another researcher and Anglo-Welsh philologist, Sir William Jones, stated that while reviewing Hindu
literature, people would usually come across the notion of infinity. There are numerous ancient Indian
texts and scriptures which carry a wealth of knowledge. However, some of the most famous scriptures
include Vedas, Upanishads and Puranas, and epics, such as Ramayana, Mahabharata and Bhagavad
Gita. Hindu literature is divided into two categories, namely Sruti and Smriti. Sruti refers to the heard
literature, whereas Smriti refers to the remembered or traditional literature. The Mahabharata is
classified as Smriti. Many scholars consider Bhagavad Gita as Smriti literature, whereas others
regard it as Sruti. Teachings from various scriptures can be applied in modern day businesses. Let us
now discuss the teachings of two major scriptures namely, The Mahabharata and the Bhagavad Gita
and how these teachings can be applied in businesses in the upcoming text.
From Vedas
A. C. Bhaktivedanta Swami Shri Prabhupada had mentioned in his book titled ‘Science of Self-
Realization’ that the Vedas have been created by the almighty and these serve to regulate the earth that
has been created by him. In his book, he mentioned that usually a booklet contains information about
how a product should be used when you purchase any product from the market; the almighty has also
given Vedas to us for regulating his universe.
Vedas are considered as a treasure house that contains ancient value systems. The ancient value systems
are based on various building blocks as follows:
 Satyam or Truth  Danam or Charity
 Tapah or Austery  Daya or Mercy
 Damah or Sense Control  Nyasah or Renunciation
 Samah or Tranquility of mind
 Dharma or Righteousness
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It is considered that the Vedas are a way to attain knowledge which means realising the abstract from
the concrete. If the knowledge contained in the Vedas is interpreted and assimilated properly, then,
corporate world may be able to practically implement Vedic knowledge.
Implementation of Vedic knowledge assures that it is possible to achieve the best results using a positive
and right approach by implementing social responsibilities related to:
 Family welfare programmes for employees and his family during times of need
 Community development programmes wherein companies undertake various types of
responsibilities for the community
 Corporate philanthropy for taking care of the most distressed and downtrodden sections of society
 Corporate citizenship, wherein the company tries to enrich the nation and feel proud of it
 Concept of trusteeship, wherein the business owners would consider themselves as trustees of
trusts rather than considering the organisation as their wholly owned private property.
From Mahabharata
Mahabharata is a major epic of ancient India. Mahabharata is made of two Sanskrit words– Maha
meaning ‘great’ and bharata meaning ‘India’. It is the longest epic in the world. It consists of over
100,000 stanzas. The Mahabharata describes the story of a power struggle between two sets of cousins,
the Pandavas and the Kauravas. It offers great lessons of life that can be implemented in the real world
also. This epic describes numerous characters and situations. If analysed properly, the text can help
in understanding human actions and psychology. The lessons that the business professionals and
businesses can learn from the Mahabharata are shown in Figure 1 as follows:
Building Strategies
Encouraging Women
Forming Alliances
Giving Preference to Team Goals Rather than Individual Motives
Maintaining Team Spirit
Showing Commitment
Showing Leadership Quality and Delegation of Responsibilities
Figure 1: Lessons Learnt from the Mahabharata

The lessons mentioned in Figure 1 are explained as follows:
 Building strategies: From the Mahabharata, it can be learned that to win any battle, it is important to
formulate an effective strategy. Similarly, businesses must formulate effective strategies to achieve
business goals and objectives. The strategies must be made keeping in mind various limitations and
constraints of the business.
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 Encouraging women: It can be observed that Pandavas often involved women in their decision-
making exercises, whereas the Kauravas did not do so. There were several important female
characters, such as Kunti, Draupadi, Hidimba and Subhadra, on the side of Pandavas. Businesses
today are also encouraging women to take part in the economic activities of the nation. In the past
century, the world has seen the emergence of various women entrepreneurs.
 Forming alliances: In business, the managers must concentrate on forming strategic alliances with
customers, suppliers, stockists, dealers, government, etc. It is important to form strategic alliances
so that the partners in the alliance can support each other and expand each other’s business.
 Giving preference to team goals rather than individual motives: In the epic of Mahabharata, all
the Kauravas had individual motives, whereas all the Pandavas had the same motive and that they
worked towards achieving those common goals. In business also, the team or the organisational
goals always supersede the personal or individual goals.
 Maintaining team spirit: The war of Mahabharata was won by Pandavas even though they were a
very few in numbers and Kauravas were greater. This was made possible because all the Pandavas
were fighting as a team and not as individuals. In businesses also, there are times when the
organisations require the contribution of a team to achieve certain goals. The organisation cannot
be successful if its members have conflicts continuously.
 Showing commitment: Each organisational member must be committed towards achieving
the overall organisational goals even at the cost of individual goals. The level of commitment of
Pandavas was far greater than that of the Kauravas.
 Showing leadership quality and delegation of responsibilities: The Kauravas were led by a single
leader, Duryodhana, who was overseeing all the activities related to the war. On the other hand,
Pandavas decided to designate the responsibilities of directing different operations to different
generals. Similarly, an organisation must demarcate different job areas and assign managers for
each job area.
From the Bible

Some of the important management lessons that can be learned from the Bible are as follows:
 Being honest with customers
 Being down to earth and humble
 Doing charity
 Managing conflicts
 Maintaining integrity
 Building honesty
 Sowing and reaping
 Treating employees fairly
 Working hard
From the Quran

Some of the important management lessons that can be learned from the Quran are as follows:
 Eliminate wastes
 Provide equal opportunity to all
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 Fulfil commitments
 Employ just in time
 Employ Kaizen philosophy
 Ensure mutual consultation for decision making
 Be obedient
 Respect authority
 Utilise resources optimally
From Kautilya’s Arthasasthra

Some of the important management lessons that can be learned from Kautilya’s Arthasasthra are as
follows:
 Equal and appropriate distribution of profits
 Do not misuse power
 Follow business management principles
 Conduct business activities ethically
 Carry out examination and audit of business activities
 Conduct business using a sustainable economic growth model
 Ensure the welfare of people
12.4 INDIAN HERITAGE IN BUSINESS MANAGEMENT

In India, the business has been considered a sacred activity and it is not considered evil and unethical.
Business runs based on attitude, approach and management consciousness. Some of the most basic
Indian ethos and values that are held dearly by organisations are as follows:
 Maintaining a positive management attitude
 Humanising the organisation
 Self introspection
 Brain stilling (or decision making in silence)
 Self dynamiting meditation
As compared to ethos belonging to any other place, Indian ethos are most relevant to modern
management. This is so because Indian ethos considers a whole man rather than partially considering
a man. It is also believed that every situation can be met effectively if one takes time to reflect on it.
Indian ethos also considers the role of spirituality and helps in developing a socially responsible vision.
Apart from these, other important Indian ethos includes welfare and social good of the general public,
attaching importance to duties, obligation and sacrifices, simple living and high thinking, etc.
12.4.1 Production and Consumption

According to long-held Indian ethos, the local needs of the public should be met by production from local
resources only and it is the most rational way of economic life. Also, as per Indian ethos, people should
obtain maximum well-being from minimum consumption.
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12.4.2 Work Ethos

Some of the most important ethos for the workplace are as follows:
 Behaving in a moral and dignified manner with superiors, subordinates and colleagues
 Maintaining discipline
 Remaining punctual
 Exhibit loyalty, commitment and responsibility towards the organisation
 Refraining from making any adverse comment about the organisation in public
 Refrain from wasting time during working hours
 Protecting the interest of the organisation
 Maintaining a sense of belongingness
 Engaging in morally right things
 Maintaining a positive work culture
12.4.3 Values for Indian Managers

Indian managers have an impact of their dearly held and imbibed values on their work ethics. They
generally exhibit work ethos as follows:
 Considering work as duty or Sadhana
 Considering Karma (work) equivalent to Dharma (religion/righteousness)
 Believing that Dharma is possible through Karma only
12.4.4 Ethics vs. Ethos

Both the terms ‘ethics’ and ‘ethos’ share the same etymology and are derived from the same Greek word
ethos. However, there are differences between ethics and ethos are shown in Table 1:
Table 1: Difference between Ethics and Ethos
Ethics Ethos
Ethics refer to a set of moral principles. Ethos refers to the character or customs or a set of attitudes
and values.
Ethics are derived from Shastras. Ethos is derived from culture.
Ethics are universal. Ethos is specific to certain regions or countries.
Ethics help in deciding conduct or misconduct. Ethos help in determining cultured or uncultured behaviour.
Examples of ethics include honesty, loyalty, Examples of ethos include: giving respect to elders, being
integrity, selflessness, responsibility, etc. humble, being obedient, welcoming guests with namaste,
etc.
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12.4.5 Indian Management vs. Western Management

Major differences between Indian management and Western management are shown in Table 2:
Table 1: Difference between Indian Management and Western Management
Indian Management Western Management

Associate greater value with seniority, relationships Associate greater value with being open, direct and
and family ties. confrontational.
Encourage paternalistic leaders. Encourage flexible and creative leaders.
Encourages lifetime employment and discourages hire Encourages employment of line workers.
and fire culture.
Associates greater value on corporate loyalty and Associates greater value with databases and statistics
intuition. and resists intuition.
Focus on quantity than on quality. Focus on quality.
Focus on group consensus. Focus on individual initiatives.
Focus on long-term profits. Focus on short-term profits.
People-oriented. Productivity-oriented.
Participation of women is quite low. Participation of women is relatively high.
 Ethics is a branch of philosophy. The study of ethics is related to the relative concepts of right and
wrong. The ethics of individuals or entities helps them in deciding between good and bad. The beliefs,
ideas and attitudes that are held dear and practised by a group of people or community are known
as ethos.
 Ethos is a Greek word that means ‘character’. This word is used about the guiding beliefs and ideals
that are associated with individuals, communities, countries or ideologies.
 Indian ethos has been formed as a result of contributions of various sacred texts and scriptures,
such as the Vedas, the Ramayana, the Mahabharat, the Bhagwad Gita and Upanishads.
 The major business ethos and principles practiced by Indian companies are:
 Principle of harmony
 Principle of integrity
 Principle of justice
 Principle of non-violence
 Principle of reward
 Some remarkable thoughts and considerations of Indian Ethos of Management (IEM) uncovered in
India’s old sacred writings are:
 Atmano Mokshartham Jagat Hitaya Cha: All work is an open door for doing well to the world
and, thus, gaining materially and spiritually in our lives.
175
 Archet Dana Manabhyam: Worship individuals with material things as well as by demonstrating
admiration to their enterprising divinity within.
 Tesham Sukhm Tesham Shanti Shaswati: Infinite happiness and infinite peace come to them
who see the Divine in all beings.
 There are numerous ancient Indian texts and scriptures which carry a wealth of knowledge.
However, some of the most famous scriptures include Vedas, Upanishads and Puranas as well as
epics, such as Ramayana, Mahabharata and Bhagavad Gita. Hindu literature is divided into two
categories, namely Sruti and Smriti.
 The lessons that business professionals and businesses can learn from the Mahabharata are:
 Building Strategies
 Encouraging Women
 Forming Alliances
 Giving Preference to Team Goals Rather than Individual Motives
 Maintaining Team Spirit
 Showing Commitment
 Showing Leadership Quality and Delegation of Responsibilities
 In India, the business has been considered a sacred activity and it is not considered evil and unethical.
Business runs based on attitude, approach and management consciousness.
 Indian managers have an impact of their dearly held and imbibed values on their work ethics, such
as considering work as duty or Sadhana.
12.6 GLOSSARY
 Ethos: The character or customs or a set of attitudes and values

 Karma: The collection of an individual’s actions performed by him in current and previous states of
existence which are considered to decide their destiny in future existences
 Paternalistic leader: A kind of managerial approach that involves a dominant person who acts as
a patriarch and treats employees as members of a large clan
 Vedas: The collection of four scriptures (Rig Veda, Sama Veda, Yajur Veda and Atharva Veda) which
have codified the ideas and practices of Vedic times
12.7 CASE STUDY: BEGGAR WHO GAVE ALMS TO THE POOR
Case Objective
The case study explains the importance of ethics.
In 2010, a beggar, Khimjibhai Prajapati, 64 located in Mehsana proved that for doing charity, one
only needs to have a big heart rather than deep pockets. He donated clothes to 11 poor, hearing and
speech-impaired girls at Shrimati Kesarbai Kilachand School for the Deaf. It is quite usual to see rich
philanthropists give alms to poor people but it was the first time that a beggar donated his savings
towards the school. Khimjibhai visited the school in torn unwashed clothes limping and using crutches.
He donated brand new clothes to 11 girls. He purchased the clothes using his savings of `3,000. Bharat
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Shah is the trustee of the school institution. He said that “I have never seen such philanthropy in the 35
years of my career. He just goes on to prove that the true donor is he who has one roti and shares half
with the hungry.”
Khimjibhai begs outside the Simandhar Swami Jain Temple in Mehsana and outside the Hanuman
Temple. He asks for alms from visiting devotees. When he was asked why he gave alms to the children
at the school; he replied, “I just need two meals a day and some money to send back to my ailing wife in
Rajkot to cure her ulcers and lung infection. Apart from this, whatever I earn I use to buy food for poor,
hungry people. For a long time, I wished to do something for girls and I am happy to donate for them”.
Earlier, he used to run a tea stall in Rajkot but due to increasing prices and increasing losses, he was
left with no money and on the streets. After this, he took shelter outside the Jain temple of Mehsana. He
believes that “Whether rich or poor, one should always try to help the needy”. Some time ago, he had also
helped an orphaned girl to marry.
Questions
1. What values were exhibited by Khimjibhai in the given case?
(Hint: Danan or Charity.)
2. Why did Khimjibhai donate clothes to the children at the school?
(Hint: For a long time, he wished to do something for girls.)

1. What is ethos?
2. Explain the major business ethos and principles practiced by Indian companies.
3. What are the major building blocks of value systems discussed in the Vedas?
4. Differentiate between ethics and ethos.

1. Ethos is a Greek word that means ‘character’. This word is used about the guiding beliefs and ideals
that are associated with individuals, communities, countries or ideologies. Refer to Section Meaning
of Ethos
2. The major business ethos and principles practiced by Indian companies are:
 Principle of integrity: Indian companies try to maintain their integrity in all their operations
and business conduct.
 Principle of justice: Indian companies, more or less, follow the principle of justice and they
prefer to reward appropriate behaviour and hard work and punish inappropriate behaviour
and work shirkers.
 Principle of non-violence: Indian companies try to follow the principle of non-violence and
protect themselves from any form of violent strikes, lockouts or any unnecessary or avoidable
177
conflicts. The companies try to resolve all employee and labour issues by paying them fairly and
avoiding any controversial issues.
Refer to Section Principles Practiced by Indian Companies
3. Vedas are considered as a treasure house that contains ancient value systems. The ancient value
systems are based on various building blocks as follows:
 Satyam or Truth
 Tapah or Austery
 Damah or Sense Control
 Samah or Tranquility of mind
 Dharma or Righteousness
 Danam or Charity
 Daya or Mercy
 Nyasah or Renunciation
Refer to Section Principles Practiced by Indian Companies
4. Both the terms ‘ethics’ and ‘ethos’ share the same etymology and are derived from the same Greek
word ethos. Refer to Section Indian Heritage in Business Management
 https://himadri.cmsdu.org/documents/IndianEthos.pdf
 http://thepeoplemanagement.com/the-role-of-indian-ethos-in-managerial-practices-aparna-
sharma-consulting-editor-the-people-management/
 Discuss the relevance of value-based management in global change.
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UNIT
13 Ethos and Work Culture
Names of Sub-Units
Meaning of Value, Values for Indians, Relevance of Value-based Management in Global Change, Impact
of Values on Stakeholders, Employees, Customers, Government, Competitors, Society, Managers,
Trans-cultural Human Values in Management, Management Education, Secular vs. Spiritual Values
in Management, Importance of Value System in Work Culture, Stress Management, Meditation, Yoga,
Contemporary Approaches to Leadership—Karma and Laws of Karma
Overview
The unit begins by explaining the meaning of value. Further, the unit explains the impact of values on
different stakeholders, government, employees, customers, competitors and society. In addition, the
unit explains the concept of stress management. Towards the end, the unit discusses the contemporary
approaches to leadership.
Learning Objectives

 Explain the meaning and importance of value
 Discuss the impact of values on stakeholders
 State the importance of trans-cultural human values in management
 Describe how to manage stress
 Discuss contemporary approaches to leadership
JGI JAIN
Learning Outcomes

 Identify the importance of values in the business world
 Explore different techniques to manage stress
 Analyse contemporary approaches to leadership
13.1 INTRODUCTION
People prefer to work at a place where they can intertwine their beliefs with those of the company and
work together on a common vision of purpose and success. As leaders grapple with how to recruit top
candidates and retain employees, they must rethink how they’re shaping and building a culture that
unites people around a common cause. Great culture should provide continuous alignment to the vision,
purpose and goals of the organisation. Employees care about whether companies foster environments
where employees can have a positive impact on society. Today’s workforce wants to know that they’re
making a difference within their companies.
13.2 MEANING OF VALUE

No organisation can operate in isolation. The organisation has to manage various individuals and
entities which may be internal or external to it. Internally, the organisation needs to manage its human
resources. Externally, it has to manage and take care of its customers, suppliers, government and
regulatory agencies and society at large.
All organisations work in an environment. The overall environment of an organisation comprises its
internal environment and the external environment. All business organisations want to partner, deal
and communicate with individuals or entities that are based on sound empirical values, have pre-
established norms, a sound belief system and established standards. Therefore, an organisation can
achieve success only if it imbibes positive values, norms, beliefs and standards. Having stated that, it
becomes imperative to describe the values, norms, beliefs and standards.
Values can be defined as the ideals, moral ideas or universal conceptions that ultimately drive the
behaviour of an individual or an organisation. Values can also be defined as the interests, attitudes,
inclinations, requirements, emotions and character of individuals.
In 1949, R.K. Mukherjee, an Indian sociologist defined values as socially approved desires and goals
that are internalised through the process of conditioning, learning or socialisation, and that become
subjective preferences, norms and aspirations.
In 2000, M. Haralambos defined value as a belief that something is good and desirable.
Values are the deep-seated beliefs of a person or social group. Values guide the actions and decisions
of people. Values also decide the kind of relationship that individuals maintain amongst themselves.
Values help individuals to differentiate between:
 Good and bad
 Superior and inferior
 Attractive and unattractive
 Proper and improper
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 Wanted and unwanted

 Appropriate and inappropriate
 Ethos, values, norms, beliefs and standards
An individual imbibes an understanding of values from sources, such as family (parents, elders, siblings),
school (co-students and teachers) and society at large. Some of the values that are considered desirable
in any society include patience, faithfulness, self-determination, fairness, justice, respect, tolerance,
compassion, etc. Just like individuals imbibe a set of values over their lifetime and their decisions are
guided by these values, businesses are also guided by a set of values they hold dear. These are called
corporate values. Values guide and inspire the organisation’s employees to achieve the organisational
goals and objectives. Some of the most important corporate values are as follows:
 Accountability  Responsiveness
 Commitment to customers  Safety
 Cordial relationships  Stewardship
 Fairness  Teamwork
 Innovation  Transparency
 Integrity  Trust
 Quality of life
13.2.1 Values for Indians

The term value is derived from the Latin word ‘valere’ meaning ‘to be strong, to prevail or to be of worth.’
The objectives stated in the Preamble of the Indian Constitution enunciates the values of justice, liberty,
equality, fraternity within a sovereign, socialist, secularism’. Articles 14(4) and 16(4) aim at removing
social and economic inequalities and ensure equal opportunities. Articles 14, 15, 16, 21, 38, 39 and 46 are
to make the quality of the life of the poor, disadvantaged and disabled citizens in the society meaningful.
The Parliamentary Committee on Value Education set up under the chairmanship of Mr. S. B. Chavan, in
its report to the Indian Parliament in February 1999, has identified five core universal values as:
1. Truth
2. Righteous conduct
3. Peace
4. Love
5. Non-violence
These values represent the five major areas of human personality, namely vision and identity.
13.2.2 Relevance of Value-based Management in Global Change

Value Based Management (VBM) refers to the management philosophy that lays emphasis on
supporting maximum value creation in organisations, typically the maximisation of shareholder value.
VBM encompasses the processes for creating, managing and measuring value. The value creation
process requires an understanding of the attractiveness of the market or industry where one competes,
coupled with one’s competitive position relative to other players. Once this understanding is established
and is linked with key value chain drivers for cash flow and profitability, competitive strategy can be
established or modified to maximise future returns.
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VBM focuses on the alignment of business vision, goals, strategies, policies and practices, which helps
organisations in reducing cultural differences; thereby managing more effectively in global markets.
13.3 IMPACT OF VALUES ON STAKEHOLDERS

The way the organisation conducts its culture, vision and mission all are governed by its values.
However, different stakeholders may have differing views of what represents value. Management aims
to reconcile these differences and enable the organisation to achieve the greatest progress towards its
stated goals. Let us have a look at the impact of values of different stakeholders.
13.3.1 Employees
An organisation’s performance improves to a great extent when employees live the values that are most
important to business. Employees who understand and believe in the core values of the organisation
can:
 Have a clear understanding of their roles
 Know what the company is trying to achieve and how it can contribute
 Know the values and attitudes they need to adopt to perform at their best
 Use core values to guide their actions in new or difficult situations
Apart from that core values can improve employee engagement. Engagement is a measure of how
committed, energetic and focused employees are in their approach to work. Disengaged employees are
most likely to put in less effort and want to leave the organisation. Engagement generally increases
alongside job satisfaction and workplace morale. Effective core values can increase engagement by
creating a workplace culture built on principles that employees believe in. Employees might, therefore,
find more fulfilment in their work.
In addition, core values can also help in competing for the best talent, in three significant ways, which
are:
1. When potential employees find core values inspiring, they are more likely to apply for a position.
This can provide an organisation with a wider candidate pool to select from. Inspiring core values
might include things like ‘innovative’, ‘humble’ or ‘creative’.
2. When the organisation’s workplace is recognised for a strong culture built on real values, its
reputation as an employer can grow. Consequently, people will want to work for the organisation.
3. Core values not only help the organisation to recruit better quality employees but also help to attract
staff who are a better fit. When the organisation includes core values in recruitment materials, such
as job ads, it can attract people who already share the same core values. These new hires are likely
to fit well with the existing organisational culture.
13.3.2 Customers
Having clear company values helps in ensuring that all employees are working towards the same
goals. If employees work efficiently, they will better serve customers. In addition, having a set of specific
and unique core values can be a highly competitive advantage for an organisation. This is because
the values of an organisation help clarify the identity of the brand and educate them about what the
organisation stands for.
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13.3.3 Government
If an organisation adds values, such as justice and equality, to its corporate culture then the employees
are always satisfied with their jobs. As a result, fewer cases are filed in labour courts. Also, if the
organisation integrates environmental concerns into its values, it helps the government in reducing
environmental concerns.
13.3.4 Competitors
If an organisation’s values are imbibed in its culture, it differentiates itself from its competitors. Also,
core values bring a competitive advantage for the organisation. The following are examples of some
organisations whose core values have helped them to stand differently in the market.
Google
One part of Google’s core values— “don’t be evil,” originally, but since replaced with the more positive
and less amusing “do the right thing”—is pretty well known. But while that’s the boiled-down version of
Google’s values, it’s not the whole story.
 Focus on the user and all else will follow.
 It’s best to do one thing well.
 Fast is better than slow.
 Democracy on the web works.
 You don’t need to be at your desk to need an answer.
 You can make money without doing evil.
 There’s always more information out there.
 The need for information crosses all borders.
 You can be serious without a suit.
 Great just isn’t good enough.
As a technology company, Google’s priorities are a bit different. Their values reflect the industry (and
the company itself) in their tone, which is a bit less formal and more philosophical. “You can make
money without doing evil” would work just as well as the title of a TED Talk as it does a core value for a
business.
Starbucks
One can get coffee anywhere, from gas stations to fast food restaurants to one’s office’s vending
machine. However, Starbucks took something that’s essentially a commodity and became not just a
luxury version but the market leader. Their core values are a road map showing how they did it.
“With our partners, our coffee and our customers at our core, we live these values:
 Creating a culture of warmth and belonging, where everyone is welcome.
 Acting with courage, challenging the status quo and finding new ways to grow our company and
each other.
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 Being present, connecting with transparency, dignity and respect.

 Delivering our very best in all we do, holding ourselves accountable for results.
We are performance driven, through the lens of humanity.”
13.3.5 Society
Nowadays, organisations strive to align their values with their corporate social responsibility (CSR)
model. CSR is a type of business self-regulation to be socially accountable. There is no one “right” way
companies can practice CSR; many corporate CSR initiatives strive to positively contribute to the public,
the economy or the environment. In today’s socially conscious environment, employees and customers
place a premium on working for and spending their money with businesses that prioritise CSR.
13.4 TRANS-CULTURAL HUMAN VALUES IN MANAGEMENT

Trans-cultural practices and values have become significantly important in the corporate world.
The synergy between corporate culture and managerial values gives rise to cross-cultural practices,
which helps in making effective strategic options and performing business tasks successfully. Skills,
capabilities, knowledge, technology and experiences are better facilitated by a cross-cultural approach,
particularly in multinational organisations. Compatibility between societal values and managerial
practices influences organisational success.
13.4.1 Management Education

Over the years, management institutions have come up rapidly. The Multi-National Companies actively
seek out management graduates to fill its rank and file and groom them to become future leaders. This
has led a vast majority of Indian students aiming to get an MBA or PGDM degree to make their career in
this field. However, no matter how many MBA colleges in India are mushrooming and students queuing
up to attain a management degree, the question persists; why management education is necessary? Let
us consider the points that justify the value that management education can add.
 Getting to know how the business works: When one gets into a management course, he/she gets the
exposure to develop and improve business knowledge and learn various tools and techniques. This
becomes valuable in the later career, which requires more analytical thinking to identify and tackle
business challenges. Even for the entrance examination, many of these management institutions
require them to develop real life skills, such as numeric ability, data interpretation, language skills,
logical reasoning and current affairs. The graduates from the management institutes are prepared
for life and have a higher success rate dealing with upcoming life challenges.
 Improving leadership skills: In a management college, various seminars, workshops, projects and
case-studies, enable an individual to improve their people management skills. As one progresses in
their career, he would need to manage people where interpersonal skills become indispensable to
grow into an effective leader. It also provides the students a valuable opportunity to explore their
likes and dislikes, as well as their many talents to make the most of upcoming opportunities.
 Getting familiar with corporate etiquette: In the course of their internship, people get a taste of the
business world where they learn the nuances of running a business and becoming a professional.
This prepares them for the real-life work conditions which sometimes may make demands, such as
meeting targets, negotiating, insane working hours, people and their temperaments, pressure, as
well as work-life balance. This ensures that the students graduating from these courses do not live
in their fairy world and do not have any illusions about the harsh world out there.
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 Understanding opportunities in the job market: Getting a job in today’s economy can prove to be
a difficult endeavour and any help one gets in this regard is a blessing. The placement cells also
take the students through various employment ability skills training sessions which improves their
chances of getting selected in the companies. It is also observed that due to the business acumen
these students develop, companies are comfortable taking them at a higher salary and hierarchy
than non-management graduates.
13.4.2 Secular vs. Spiritual Values in Management
Spirituality
The term spirituality has been derived from a Latin word, SPIRITUS, which refers to “breath” or “wind”.
It involves a belief in a relationship with some higher power, divine being or infinite source of energy.
From per spiritual perspective, there are the following needs of human beings:
 Love  Forgiveness
 Hope  Being respected and valued
 Trust  Dignity
 Fullness of life  Connecting with higher power
 Values  Belonging to a community
 Creativity
Role of Management in Spirituality

 Having an organisational vision/mission that helps individuals make a difference in the world they
could not otherwise make
 Leading and managing by using values that drive fear and abuse out of the workplace and engage
the hearts and minds of people
 Allowing for decision making responsibility through self-managed and empowered teams
 Trusting people and letting them be who they are to use and develop their skills
 Offering collective forms of reward and recognition
 Providing a way for employees to fulfil their family and other social obligations
Secularism
The fundamental principle of Secularism is that in his whole conduct, man should be guided exclusively
by considerations derived from the present life itself. Anything that is above or beyond the present
life should be entirely over looked. Whether God exists or not, whether the soul is immortal or not, is
question that at best cannot be answered, so they should be ignored.
Effects of Secular Management

Secular management acts as a handmaid of profit, where the motto is to earn more and more money
at any cost. Under such management, there is external growth at the cost of internal growth. Man, as a
human being stands nowhere. There is the erosion of ethical, spiritual, moral and human values as well
as a human touch between top management and operatives.
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13.4.3 Importance of Value System in Work Culture

Values are important because they guide beliefs, attitudes and behaviour. If you continuously
compromise values in decision making, the detriments to your morale are undeniable. Recognising,
understanding and staying loyal to values is, therefore, one of the most important efforts any human
being can take, and is equally as important when it comes to the workplace. Here is a list of reasons
outlining the specific importance of values in the workplace:
 Values help gain self-respect: Sticking to values and choosing not to compromise them for demands
is a guaranteed way to regain self-respect. For example, if one values punctuality, it should be
communicated to co-workers. If one feels he/she is being underappreciated or neglected by superiors,
then he/should come forward to speak up. Communicating one’s values not only improves their
relationships and happiness with others but builds self-respect.
 Values help one to be clear about wants: Personal values do not only serve an important function
in one’s life. They can be especially useful in the workplace as well, informing job searches or
career decision making. To identify personal work values, one should aim to sort values from most
important to least important. These could include recognition, achievement, independence, support,
working conditions, justice, and so on. By having a clear sense of which values are important to
work efforts, one will be able to identify the companies or industries that have methods and goals
most conducive to your values.
 Values help in decision-making: The modern job market can make anyone feel like they have all
the choices in the world, but with that opportunity overload, there comes the feeling that we have
‘forgotten’ how to make a good decision. Having a clear sense of what one’s values are can help in
navigating those options, eventually drawing out the ideal choice. For example, if you have reached
your maximum position for growth and advancement in the company you work for, what steps do
you take?, Are you meant to stay and compromise your desire for more stimulation for job security?
or do you value stimulation more than security and start looking for a new job where you can
further develop?
 Values keep one motivated, focused and engaged: When one is working for a company with whom
one disagrees over product, process or mission, one’s productivity suffers. Living in accordance with
values keeps one motivated and happy in all areas of life, including the workplace. Working towards
a goal one does not strongly believe in can leave one lagging in efforts and losing motivation much
faster.
13.5 STRESS MANAGEMENT

Stress is the “wear and tear” our bodies experience as we adjust to our environment; it has physical
and emotional effects on us and can create positive feelings. As a positive influence, stress can help
compel us to action. It can result in awareness as an exciting new perspective. As a negative influence,
it can result in distrust rejection, anger and depression, which in turn, can lead to health problems like
headaches, upset stomach, rashes, insomnia, ulcers, high blood pressure, heart attack and stroke.
Major Causes of Stress
Different situations and circumstances in our personal and professional lives can lead to stress.
Conditions that tend to cause stress are called stressors. The sources of stress or factors related to stress
can be broadly divided into four parts, which are:
1. Organisational causes: These include:
 Rethinking companies
 Changing operations
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 Encountering new work cultures

 Reaching the limits
 Occupational demand
 Role conflict
 Role ambiguity
 Work overload and work under load
 Responsibility for others
 Changes in working conditions
 Lack of involvement in excisions
2. Group causes: These include:

 Lack of group cohesiveness
 Lack of social support
 Conflict
3. Personal factors: These include:
 Life and career changes
 Personality type
 Career development
 Cultural differences
 Coping with daily life
4. Extra organisational causes: These include:

 Increasing urbanisation
 Ageing population
 Changing gender role
Managing Stress
 Individual level: Some individual strategies, such as physical exercises, relaxation and meditation,
can shield the person for the negative impact of stress.
 Organisational coping strategies: The most famous organising coping techniques are change in
organisational structure and function, decentralisation, job enrichment, role clarity career planning
and counselling.
 Learning to relax
 Developing interest
 Improving diet
13.5.1 Meditation
Meditation can produce a deep state of relaxation and a tranquil mind. During meditation, you focus
your attention and eliminate the stream of jumbled thoughts that may be crowding your mind and
causing stress. This process may result in enhanced physical and emotional well-being.
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13.5.2 Yoga
Yoga is a mind-body practice that combines physical poses, controlled breathing and meditation or
relaxation. Yoga may help reduce stress, lower blood pressure and lower your heart rate. It can be done
by anyone.
Yoga is considered one of many types of complementary and integrative medicine approaches. Yoga
brings together physical and mental disciplines that may help you achieve the peacefulness of body and
mind. This can help you relax and manage stress and anxiety.
13.6 CONTEMPORARY APPROACHES TO LEADERSHIP—KARMA AND LAWS OF KARMA

In literal terms, Karma refers to the cosmic law of cause and effect. In other words, it refers to a principle
according to which any intentional action, whether by thought or speech, of an individual in the past or
present influences his/her future. In the world of business, the concept of Karma is related to corporate
integrity. It means that a business organisation must inculcate a set of values to achieve its objectives.
These ethical values include honesty, transparency and ethical stewardship in business dealings of an
organisation. By incorporating such values in their business practices, organisations can build trust of
customers and achieve long-term value. On the contrary, organisations that fail to imbibe ethical values
and get involved in malpractices are destined to run into suffering in the end. For instance, recently,
the Supreme Court is taking strict disciplinary action against real-estate firms involved in misusing
customers’ funds and not delivering flats on time. On spiritual grounds, their bad Karma has brought
them to this state. Therefore, it can be said whatever an organisation/individual does in the present
shares a karmic relationship with the results faced in the future. Only those businesses that uphold
integrity and honesty in their corporate dealings can ensure their long-term survival. It may seem that
people who indulge in wrongful dealings can escape the law, but sooner or later, the law of Karma will
catch up with them.
Generally, an organisation creates various policies, frameworks and procedures to achieve its business
objectives. However, the organisation cannot achieve its objectives without the enthusiasm of managers.
The main job of managers is to enable an organisation to achieve its business objectives, thereby
boosting investor value. In a nutshell, it can be said managers perform business Karma to achieve
organisational objectives. As per the Western philosophy, business managers must demonstrate the
following behaviours to work efficiently towards the accomplishment of business goals:
 High supervisory control
 High level of competitiveness
 Unemotional approach to goal achievement
 Emphasis on winning at all costs
‘Nishkam’ means desire less, while ‘Karma’ means action. Thus, Nishkam Karma is the desireless or
selfless action performed. Nishkam Karma constitutes the central theme of Karma Yoga, the path
of selfless action. As per the law of Karma, an individual who exhibits Nishkam Karma achieves the
highest state of enlightenment. The concept of Nishkam Karma has come from Bhagavad Gita, where
Lord Krishna teaches Arjuna to fight without any desire for results. This is because the desire for results
leads a fear of failure in the minds of individuals, which can make them give up at the first instance and
not to take any action.
The concept of Nishkam Karma has great relevance with the business world. It suggests that work
should not be a burden; rather, it should act as a liberating force for individuals. This is because when
individuals work diligently without being attached to the results, it liberates them from unnecessary
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stress and burden. By implementing the concept of Nishkam Karma, managers can accept challenges
in work whole-heartedly, which, in turn, can boost productivity and excellence.
There are 12 essential laws of Karma that can transform an individual’s life. Let us discuss these laws
in detail:
1. The Great Law: According to this law, an individual’s thoughts, words and actions have consequences.
Therefore, this law is also called the law of cause and effect. To achieve peace, love, harmony and
prosperity, one must act accordingly. For example, if you desire true friends in your life, you must be
a true friend. The Great Law states that you get what you put in.
2. The Law of Creation: This law focuses upon taking actions to be successful. An individual cannot
simply sail through life and expect things to fall into place. According to this law, leaving things to
mere chance is nothing but wishful thinking.
3. The Law of Humility: This law emphasises one cannot change one’s path unless one changes
something about oneself. In other words, the law states that one must confront and accept
uncomfortable truths about one’s behaviour to seek true joy.
4. The Law of Growth: The law states that the people one meets and the places one inhabits are entirely
one’s choice. Also, the law states that one is responsible for change and cannot expect circumstances
to change.
5. The Law of Responsibility: This law focuses on taking ownership of one’s life— where one is right
now, where one wants to be and what one needs to do to get there. In other words, one must be an
instrument of the change one wishes to seek.
6. The Law of Connection: This law states that the universe is a patchwork of interconnected energy.
Thus, one must be aware of minute details of one’s life for things to fall into place.
7. The Law of Focus: The law states that one can focus on only one thing at a time and a divided mind
is more susceptible to negative thoughts like greed and selfishness.
8. The Law of Giving and Hospitality: According to this law, one’s beliefs must translate into actions.
For example, if you claim to be a true friend, then at some point in your life, you will be called to
demonstrate this trait. Therefore, one’s action will only help in one’s journey of self-discovery.
9. The Law of Here and Now: According to this law, Nirvana or enlightenment exists on the earth in
impermanent moments; therefore, one must exist in the present and appreciate it.
10. The Law of Change: According to this law, history keeps on repeating itself unless one institutes the
change one wishes to see.
11. The Law of Patience and Reward: This law states that one must accept the hardship whole-heartedly
believing that the goal will arrive, no matter at its own time and place.
12. The Law of Significance and Inspiration: According to this law, you get what you put. So, if you put
in love and energy into something, you will get a similar result.
 Values can be defined as the ideals, moral ideas or universal conceptions that ultimately drive the
inclinations, requirements, emotions and character of individuals.
 Values are the deep-seated beliefs of a person or social group. Values guide the actions and decisions
of people. Values also decide the kind of relationship that individuals maintain amongst themselves.
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 Value Based Management (VBM) refers to the management philosophy that emphasises supporting
maximum value creation in organisations, typically the maximisation of shareholder value.
 The way the organisation conducts its culture, vision and mission all are governed by its values.
However, different stakeholders may have differing views of what represents value.
 Trans-cultural practices and values have become significantly important in the corporate world.
which helps in making effective strategic options and performing business tasks successfully.
 Over the years, management institutions have come up rapidly. The Multi-National Companies
actively seek out management graduates to fill its rank and file and groom them to become future
leaders.
 The term spirituality has been derived from a Latin word SPIRITUS which refers to “breath” or
“wind”. It involves a belief in a relationship with some higher power, divine being or infinite source
of energy.
 Stress is the “wear and tear” our bodies experience as we adjust to our environment; it has physical
and emotional effects on us and can create positive feelings. As a positive influence, stress can help
compel us to action.
 In literal terms, Karma refers to the cosmic law of cause and effect. In other words, it refers to a
principle according to which any intentional action, whether by thought or speech, of an individual
in the past or present influences his/her future. In the world of business, the concept of Karma is
related to corporate integrity.
13.8 GLOSSARY
 Role ambiguity: Lack of clarity, certainty and/or predictability one might have expected with
regards to behaviour in a job
 Stress: A feeling of emotional or physical tension
 Values: Individual beliefs that motivate people to act one way or another
13.9 CASE STUDY: KARMIC DUTY OF A TRUE FRIEND
Case Objective
This case study highlights the Karmic Duty of a true friend.
Dinesh Sharma has been working in a real estate company for 15 years. A few years ago, a person
named Mohan Desai joined his team as an assistant construction manager. Dinesh and Mohan became
best friends and both shared common interests and their families too hit off very well with each other.
Everything was going well when to Dinesh’s surprise he found that Mohan had been given a termination
letter by the company and was asked to leave immediately. On enquiry, Dinesh found that the reasons
for his immediate removal were low-quality work, frequent leaves of absence and arriving drunk at the
site. After Mohan’s departure, Dinesh discussed the matter with his former colleagues and found that
the issues were indeed true.
A few days later, Mohan contacted Dinesh. He had given an interview in another organisation and had
given Dinesh’s name as a reference. Since he is the sole bread earner of his family, he desperately needed
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a job. He wanted Dinesh to give him a good recommendation and not refer to his drinking problem. He
gave him the guarantee that he has controlled the problem.
He also asked Dinesh to mention to the new organisation that Mohan had left his organisation to
address a family medical emergency and that the organisation was satisfied with his work. Although
Dinesh liked Mohan and trusted that he was a decent worker when sober, he doubted Mohan’s word that
he had conquered his drinking problem. So, he was in a dilemma.
Questions
1. What should Dinesh advise Mohan?
(Hint: Dinesh should have told Mohan that before giving his name as a reference, he ought to have
discussed with him first. He should have also informed Mohan that under no circumstances, he
would lie about the facts under which he was fired when asked specifically. However, he would also
tell the new employer that he was a decent worker and needed compassion and help from society to
conquer his habit, that he had a family to support, and should be given a fair chance. As a Samaritan
and true friend, he should support Mohan to conquer his drinking problem and ride over the rough
times.)
2. What should Dinesh do if Mohan were terminated due to theft?
(Hint: If Mohan was kleptomaniac, then Dinesh should not have recommended him, unless he had
joined an institution to rid himself of that habit.)

1. Explain the meaning of value.
2. Discuss the impact of values on stakeholders.
3. What do you mean by trans-cultural human values in management?
4. Explain the importance of management education.
5. List major causes of stress and techniques to reduce stress.

1. Values can be defined as the ideals, moral ideas or universal conceptions that ultimately drive the
inclinations, requirements, emotions and character of individuals. Refer to Section Meaning of
Value
2. An organisation’s performance improves to a great extent when employees live the values that are
most important to the business. Employees who understand and believe in the core values of the
organisation can:
 Have a clear understanding of their roles
 Know what the company is trying to achieve and how it can contribute
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 Know the values and attitudes they need to adopt to perform at their best
 Use core values to guide their actions in new or difficult situations
Refer to Section Impact of Values on Stakeholders
3. Trans-cultural practices and values have become significantly important in the corporate world.
which helps in making effective strategic options and performing business tasks successfully.
Skills, capabilities, knowledge, technology and experiences are better facilitated by a cross-cultural
approach particularly in multinational organisations. Compatibility between societal values and
managerial practices influences organisational success. Refer to Section Trans-cultural Human
Values in Management
4. Over the years, management institutions have come up rapidly. The Multi-National Companies
actively seek out management graduates to fill its rank and file and groom them to become future
leaders. This has led a vast majority of Indian students aiming to get an MBA or PGDM degree to
make their career in this field. However, no matter how many MBA colleges in India are mushrooming
and students queuing up to attain a management degree, the question persists; why management
education is necessary? Refer to Section Trans-cultural Human Values in Management
5. Different situations and circumstances in our personal and professional lives can lead to stress.
Conditions that tend to cause stress are called stressors. Refer to Section Stress Management
 https://www.verywellmind.com/practice-basic-meditation-for-stress-management-3144789
 https://blog.hubspot.com/marketing/company-values
 Find some useful techniques for relieving workplace stress.
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UNIT
14 Business Ethics in Management
Names of Sub-Units
Definition of Business Ethics, Nature of Business Ethics, Need for Business Ethics, Myths and Ambiguity
Related to Ethics, Ethical Principles in Business, Theories of Ethics, Teleological Approach, Deontological
Approach, Moral Values, Absolution vs. Relativism, Kohlberg’s 6 Stages of Moral Development
Overview
The unit begins by explaining about business ethics. The unit will give insight into the business ethics
and need for business ethics. Further, the unit will acquaint you with theories of ethics, teleological
approach, deontological approach. Towards the end, you will learn about Kohlberg’s 6 stages of moral
development.
Learning Objectives

 Explain business ethics
 Describe the nature of business ethics
 Discuss the need for business ethics
 Explain the myths and ambiguity related to ethics
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Learning Outcomes

 Shed light in ethical principles in business
 Analyse importance of moral values
 Give insight on absolution vs. relativism
 Elucidate on Kohlberg’s sixstages of moral development
14.1 INTRODUCTION
Ethics refers to a set of moral beliefs and principles that govern the behaviour and activities of a
group or an individual in a society. The word ‘ethics’ is taken from the Greek word ethos which means
character, manner, culture and mindset. In the words of Peter F. Drucker, ethics deals with right actions
of individuals.
Business ethics relates to the code of conduct regarding what is right and what is wrong. It is also
associated with principles and standards of moral duty and obligation. Business ethics relates to a set
of principles or norms that govern the conduct of business at an individual level or at the organisational
level. Business ethics guides managers in taking day-to-day business decisions. These decisions are
taken by considering ethical issues specific to business activities and situations.
14.2 DEFINITION OF BUSINESS ETHICS

Ethics is based on moral values and beliefs that govern the behaviour and action of people. The same
situation of governing the action of people also applies to business. Business ethics relates to a set of
standards that are made to differentiate between the right and wrong in terms of different business
practices and policies. There are many unethical practices and issues, such as bribery, monopoly,
trading, discrimination, or child labour, which need to be handled effectively keeping in mind the ethical
standards. According to Raymond C. Baumhart, the ethics of business is the ethics of responsibility.
The businessman must promise that he will not harm knowingly.
Every business should follow certain basic principles and set up a code of conduct. These principles
should set the tone for a business so that the consumers are able to get quality goods at reasonable
prices. Unfair practices in business are controlled with these ethical standards, which are beneficial for
their employees in terms of good working conditions, fair wages, absence of exploitation of workers, no
malpractices, etc.
In the words of Kirk O. Hanson, a renowned ethics expert, business ethics is the study of the standards
of business behaviour, which promote human welfare and the good.
Apart from employees, business ethics relate to different social groups connected with a business such
as consumers, stakeholders, traders or investors.
14.2.1 Nature of Business Ethics

Some of the important features of business ethics are as follows:
 Code of conduct: Business ethics constitute a code of conduct which must be followed. It spells out
what needs to be done and what does not need to be done. Every business must adhere to this code
of conduct.
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UNIT 14: Business Ethics in Management JGI JAIN
 Moral and social values: Business ethics is a set of moral and social principles which need to be
adhered to for carrying out any business. Every business should follow these set standards and
norms.
 Protection of social groups: Business ethics help protect different groups of the society connected
with a business, such as traders, consumers, stakeholders and employees, from being exploited or
cheated in the name of a business.
 Fair and ethical behaviour: Business ethics is the basic framework which lays out the foundation
for conducting business in a fair and ethical manner. It lays out the legal, economic, social, cultural
and other limits on which a business must operate.
 Voluntary nature: Business ethics cannot be enforced. These are voluntary practices and should be
followed by every business.
 Education and guidance: Every person involved in a business must be aware of the moral and
ethical principles for carrying out its activities. There should be a system of training to guide the
businessmen and to educate them in terms of business ethics.
 Relative term: Business ethics is relative and may vary across different countries and different
types of businesses.
 New concept: Developed countries are better at complying with business ethics than undeveloped
countries. Now, every country has started following the code of business ethics.
14.2.2 Need for Business Ethics

It is important for every business to be fair and beneficial to society. Therefore, business organisations
need to adhere to ethics and the rule of law. It is necessary for them to follow fair practices and compete
fairly to benefit employees, consumers and society.
Business ethics is important for organisations because of the following reasons:
 Fair and ethical work culture: Every human being must practice fair, honest and ethical behaviour
and should receive similar kind of behaviour. Everyone wants to work in an environment which is
fair and ethical in its practices.
 Organisational credibility: The organisation that includes a work culture based on moral values is
well respected in society. It speaks of proper social responsibility initiatives along with good corporate
culture. This belief is accepted all over the world irrespective of the organisation or business.
 Binding people: An organisation driven by values is preferred by employees. The values help bind
employees and the management amicably.
 Improves decision making: The decisions taken by the employees and the management are driven
by ethics and values. Ethical business organisations are well respected in the industry, even by their
competitors.
 Profitable in the long run: Organisations that follow moral values and ethics tend to gain in the
long run as they are well respected in the industry for their values,ethics, norms and policies.
 Safeguarding public interest: Normally, it is seen that ethics triumphs over the law in safeguarding
public interests. Sometimes, the court of law is unable to safeguard society and the environment.
With the changing technology, there are new regulations and newer threats and issues which need
to be handled. Therefore, it is seen that when the law fails, it is the process of ethics that tries to
create a sense of right and wrong in organisations. It is the ethics that safeguards the interests of
the people of the society and it is universally followed all over the world.
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14.2.3 Myths and Ambiguity Related to Ethics

There are many myths that are connected to business ethics. Business ethics at the workplace relates
to an alignment between values and norms of the organisation and how it uses them. These values
and norms are used in the day-to-day activities and operations by employees in accordance with the
established organisational policies.
Some of the myths surrounding business ethics are as follows:
 Business ethics has more to do with religion than management
 Ethics cannot be controlled or managed
 Employees who are hired are already ethical, therefore, they do not need more teachings on business
ethics
 Business ethics is practiced by academicians and philosophers
 Some people feel that business ethics is not needed and is only superfluous
 Being ethical means not breaking the law
 Unethical behaviour in business is only due to a few wrong people
 To manage ethics in the workplace does not have much relevance
 Being socially responsible and following business ethics is the same thing
Every business needs a culture which is ethical and which reflects on the employees working in the
system. To have a successful business, it is necessary to follow the code of ethics.
14.2.4 Ethical Principles in Business

Management and ethics go hand in hand and are connected to activities and relationships within an
organisation. As explained before, ethics is a set of beliefs and principles that affect the behaviour of
employees, decide what is right or wrong, good or bad in a certain business situation, and lays out the
standard code of conduct for both managers and employees. To manage ethics in the workplace does
not have much relevance. Being socially responsible and following business ethics is the same thing.
Every business needs a culture which is ethical and which reflects on the employees working in the
system. To have a successful business, it is necessary to follow the code of ethics.
Management and ethics go hand in hand and are connected to activities and relationships within an
organisation. As explained before, ethics is a set of beliefs and principles that affect the behaviour of
employees, decide what is right or wrong, good or bad in a certain business situation, and lays out the
standard code of conduct for both managers and employees.
Ethical Decision-Making and Resolving Business Problems

Solving problems and making decisions involve skills that are important for conducting both business
and social activities. Ethical decision making is required by the management and the leadership for
problem solving in an organisation.
The seven-step process for solving problems and making ethical decisions is explained as follows:
1. Identify the problem: Decision makers try to identify the nature of the problem.
2. Gather information: Decision makers gather total information that pertains to the problematic
situation.
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3. Find the right solution and action: Once the problem is identified, decision makers look for the right
solution for the problem.
4. Analyse and compare the courses of action: Decision-makers analyse and compare the different
courses of action with their respective advantages and disadvantages.
5. Select the best course of action: After analysing all the options, decision-makers select the best
possible course of action.
6. Make a plan: Decision-makers make a plan on how to do it, when to do it, where to do it and who
would do it.
7. Implement the plan: In this step, the final plan is put into action.
14.3 THEORIES OF ETHICS

The systematic analysis of moral standards with the purpose of justifying the way in which they are
understood, interpreted and applied on moral issues is known as ethics. Ethics is a set of moral standards
that aligns behaviours within an organisation and the social framework. Ethical theories guide the
process of decision-making because these theories represent the views and opinions of individuals
seeking guidance while they make decisions. These theories are classified into three general subject
areas:
1. Meta-ethics: This is the branch of ethics that seeks to understand the nature of ethical behaviour,
characteristics, statements and judgements. It is concerned with the nature of ethics and the
theoretical meaning of ethical principles and morality regarding what is good or bad and right or
wrong. It is generally concerned with ethics being relative or the conduct of human behaviour.
2. Normative ethics: This deals with norms, values or standards on how one should act. It is mainly
concerned with the content on the theory of moral judgements in terms of defining and determining
the moral course of action on the basis of what is right or wrong and good or bad. The normative
theories generally seek to provide guidelines for determining a specific course of moral action. The
main assumption in normative ethics is that every moral conduct has a certain fixed criterion,
which could be a single rule or a set of principles. These ethics can be broadly divided into three
theories as follows:
i. Virtue theories: These theories stress the need to have a good mentality and habits and do not
lay much stress on the concept of learning.
ii. Duty theories: Duty theories, also known as deontological theories, are based on specific
objectives of morality and on specific, functional principles of obligation.
The word ‘deon’, is a Greek word and it means ‘duty’, which refers to an obligation or the essence
of duty.
iii. Consequentialist theories: According to these theories, we first distinguish between the good
and bad consequences of an action. Secondly, we determine whether the total good consequences
outweigh the total bad consequences. If the good consequences are greater, then the action is
morally proper. It is natural for us to understand our moral values by taking into account the
result of our behaviour and actions.
3. Applied ethics: This art of ethics attempts to deal with the specific domain of human action and to
define standards and norms for discussing issues that might arise within those areas. It deals with
the philosophical investigation, from a moral viewpoint, of particular issues in private and public
life, which are matters of moral judgement. Therefore, ethics lays out well-defined standards that
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impose responsibility to ensure that human beings refrain from any misconduct, which could be
harmful to the self as well as to society.
14.3.1 Teleological Approach

The teleological theory is based on the contention that right or wrong actions are based on circumstances
and the goodness or badness of their consequences. The term ‘teleology’ is taken from the Greek word
‘telos’, which means ‘goal’ or ‘end’. Hence, teleology is the study of purpose or goals and is also termed
as consequentialist ethics.
According to the teleological interpretation, the actions, when taken away from their consequences
become morally neutral.
The three types of teleological theories are:
 Ethical egoism: According to ethical egoism, an action is good as long as it results in maximisation
of the person’s self-interest as defined by him, even if it is at the expense of others. Ethical egoism
talks of morally promoting one’s own good. At times, keeping aside self-interest could also be morally
right.
 Utilitarianism: According to the Utilitarianism theory, an action is good if it results in maximum
satisfaction of the large number of people who are linked with it and would get affected by the
action.
 Eudaemonism: According to eudaemonism, an action is good if it results in fulfilling the goals and
takes care of the welfare of human beings. If the actions tend to take care of the needs of the people
and give them happiness, then it is considered as being useful and productive.
14.3.2 Deontological Approach

Deontological ethics is mainly dependent on the action being right or wrong and it does not focus on the
outcome of the action. According to the deontological theories, people adhere to their obligations and
duties when engaged in decision making involving ethics. This means that a person will follow his/her
sense of duty or commitment to an individual or society since he/she believes that committing his/her
duty is ethically right. The three kinds of deontological theories are shown.
1. Negative and positive rights theories: In the negative rights theory, an action is right if it protects
the individual from harm or unjustifiable interference from other people or the government while
exercising his/her right. On the other hand, according to the positive rights theory, an action is right
if it provides an individual with anything that he needs to exist.
2. Social contract theories: According to the social contract theories, people make a commitment with
each other to follow the moral and political obligations towards the society in which they live.
3. Social justice theories: The social justice theories believe that the action will be considered right if it
confirms the fairness in the distributive, retributive and compensatory aspects of cost and rewards.
14.4 MORAL VALUES

Ethics is based on moral values and beliefs that govern the behaviour and action of people. The same
situation of governing the action of people also applies to business. Business ethics relates to a set
of standards that are made to differentiate between right and wrong in terms of different business
practices and policies. There are many unethical practices and issues, such as bribery, monopoly,
trading, discrimination or child labour, which need to be handled effectively, keeping in mind the ethical
204
standards. According to Raymond C. Baumhart, the ethics of business is the ethics of responsibility.
The businessman must promise that he will not harm knowingly.
Every business should follow certain basic principles and set up moral values These principles should
set the tone for a business so that the consumers are able to get quality goods at reasonable prices.
Unfair practices in business are controlled with these ethical standards which are beneficial for their
employees in terms of good working conditions, fair wages, absence of exploitation of workers, no
malpractices, etc.
14.4.1 Absolution vs. Relativism

Absolutism lays out fixed norms and standards for all people. It is the process of making normative
ethical decisions based on objective rules. The main characteristics of absolutism are:
 It maintains that some things are always right and some things are always wrong.
 The process of absolutism allows moral rules to be evaluated critically so that, inall fairness, the
people are treated in the same manner since the rules are the same for everyone.
 Absolute rules are universal in all cultures and situations. It means that if the rules are honest and
principled, then there is no need to have different rules for different people. For example, according
to this viewpoint, the acts of murder and stealing are considered totally wrong, irrespective of their
circumstances or results.
14.4.2 Kohlberg’s 6 Stages of Moral Development

Kohlberg’s theory of cognitive moral development states that individuals go through three levels of
moral thinking that build individuals’ cognitive development. The three levels of moral thinking include
pre-conventional, conventional and post-conventional levels. These three levels include six stages of
moral development as follows:
 Level 1: Pre-conventional
 During the pre-conventional level, children believe that following the rules made by their parents
and teachers are important and must be followed. Their reasoning of morality is controlled
externally.
 During Stage 1 (obedience/punishment orientation), the children obey their parents and
teachers due to the fear of being punished.
 During Stage 2 (self-interest), children follow the set of rules due to their own interests and their
behaviour is dependent on what others can do for them.
 Level 2: Conventional
Throughout the conventional level, children continue to adhere to the rules of the authority and
the fairness of those rules is not questioned by them. But the emphasis is more on the concept of
a relationship with others than on their own interest. They follow the rules set by the parents and
others to be accepted in society.
 During Stage 3 (good boy, nice girl orientation), children want to be accepted in society. They
want to be good and win the acceptance and approval of the other people within society.
 During Stage 4 (law-and-order orientation), children accept rules and their importance in
maintaining a functional society.
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 Level 3: Post-conventional
In the post-conventional level, the sense of morality is based on abstract principles and beliefs.
People also start to disobey rules that are inconsistent with their own principles.
 During Stage 5 (social-contract orientation), the people value the will of the majority and the
well-being of the society.
 During Stage 6 (universal ethical principle orientation), a person’s reasoning is based on his
own ethical beliefs and principles. In this stage, moral reasoning is dependent upon universal
principles of looking at people or groups being affected by one’s decisions.
 Business ethics relates to the code of conduct on what is right or wrong.

 Ethical theories guide the process of decision making.
 The teleological theory is based on the contention of what is right or wrong action based on
circumstances.
 Business ethics refers to a set of standards that are made to differentiate between the right and
wrong in terms of different business practices and policies.
 There are many myths that are connected to business ethics.
 Business ethics at the workplace relates to an alignment between the values and norms of an
organisation.
 Management and ethics go hand in hand and are connected to activities and relationships within
an organisation.
 Ethical leadership is guided by ethical values and beliefs.
 All the managers in an organisation must follow a code of conduct. It is important for them to
demonstrate a sense of integrity and lay stress on fairness and ethics.
 Kohlberg’s theory of cognitive moral development states that individuals go through three levels of
moral thinking that build individuals’ cognitive development.
 The three levels of moral thinking include pre-conventional, conventional and post-conventional
levels.
14.6 GLOSSARY
 Ethics: The moral principles that govern the behaviour of an individual during an activity.
 Code of conduct: A set of rules defining social norms, responsibilities, religious rules and activities
for an individual.
 Morality: The principles concerning the difference between right and wrong or good and bad
behaviour.
 Ethical issues: A problem or situation that requires a person or organisation to choose between
alternatives that must be analysed and evaluated as being ethical or unethical.
 Ethical leadership: The leadership that involves respect for ethical beliefs and values and the rights
of others in addition to being fair.
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14.7 CASE STUDY: IMPLEMENTATION OF THE TATA CODE OF CONDUCT AT TATA

STEEL
Case Objective
This case study highlights the importance of ethics in an organisation.
Tata Iron and Steel Company Ltd. (TISCO), also commonly known as Tata Steel, is a century-old company.
Mr. Jamshedji Tata was a visionary and established the company in 1907. Located in India, it is Asia’s
largest integrated private sector steel company. From the start, the company has always focussed
on customer satisfaction, operational excellence, employee welfare, organisational leadership, social
responsibilities and citizenship. Being consistent with its values and principles, the company is one of
the most respected companies in the country. It is known for its ethical and dynamic practices and
competitive achievements. The use of the name ‘Tata’ has always been associated with trust. The mission
statement of the Tata group is improving the quality of life in the communities it serves.
According to Tata, our heritage of returning to society what we earn evokes trust among consumers,
employees, shareholders and the community. This heritage will be continuously enriched by formalising
high standards of behaviour expected from employees and companies.
The code of conduct associated with the values and principles that govern the company (and Tata group)
were formulated in 1998. This code of conduct was made to guide each employee on the values, ethics,
and business principles that are expected from them. The implementation of these principles of the Tata
code of conduct was important for every autonomous group of companies to be associated with ‘Tata’
as a brand. The main purpose of the company was to make a successful implementation of this code of
conduct for Tata Steel. For implementing the code of conduct, the company created a new position of
‘ethics counsellor’ at the top management level. The ethics counsellor was asked to report on the day-
today functioning of the Managing Director of the company. However, he directly reported to the group
headquarters. There were ethics coordinators who reported directly to the ethics counsellor regarding
ethics. Every year, a number of awareness programmes and seminars were organised by the ethics
coordinators in consultation with the ethics counsellor to ensure better involvement of employees in
the ethical awareness programme. These programmes were also organised for other stakeholders such
as suppliers and dealers of the company. After having succeeded in creating awareness about ethical
practices among their employees, almost 15 awareness programmes were organised for the families
of the executives. This made the family members feel proud and happy that one of them was part of a
‘value-based’ organisation.
Source: www.vikalpa.com
Questions
1. What actions were taken to implement the code of conduct?
(Hint: Hiring of ethical counsellors and coordinators)
2. What were the activities undertaken by Tata Steel to involve its employees in the ethical awareness
programmes?
(Hint: Organised workshops, seminars and awareness programmes)
3. What business ethics were followed by a company right from the start?
(Hint: The company followed customer satisfaction, operational excellence, employee welfare,
organisational leadership, etc.)
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4. What is the mission of Tata Group?

(Hint: To improve the quality of life in the communities it serves.)
5. Why was code of conduct implemented?
(Hint: To guide each employee on the values, ethics, and business principles that are expected from
them.)

1. Write a brief note on business ethics.
2. Put forward some important features of business ethics.
3. Why is business ethics important to organisation?
4. What are some of the common myths regarding business ethics?
5. What do you infer by the teleological theory?

1. Business ethics relates to the code of conduct regarding what is right and what is wrong. It is also
associated with principles and standards of moral duty and obligation. Business ethics relates to
a set of principles or norms that govern the conduct of business at an individual level or at the
organisational level. Business ethics guides managers in taking day-to-day business decisions.
These decisions are taken by considering ethical issues specific to business activities and situations.
Refer to Section Definition of Business Ethics
2. Some of the important features of business ethics are as follows:

 Code of conduct: Business ethics constitute a code of conduct which must be followed. It spells
out what needs to be done and what does not need to be done. Every business must adhere to
this code of conduct.
 Moral and social values: Business ethics is a set of moral and social principles that need to be
adhered to for carrying out any business. Every business should follow these set standards and
norms.
 Protection of social groups: Business ethics help protect different groups of the society connected
with a business, such as traders, consumers, stakeholders and employees, from being exploited
or cheated in the name of a business.
3. Business ethics is important for organisations because of the following reasons:
 Fair and ethical work culture: Every human being must practice a fair, honest and ethical
behaviour and should receive similar kind of behaviour. Everyone wants to work in an
environment which is fair and ethical in its practices.
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 Organisational credibility: The organisation that includes a work culture based on moral
values is well respected in society. It speaks of proper social responsibility initiatives along with
good corporate culture. This belief is accepted all over the world irrespective of the organisation
or business.
 Binding people: An organisation driven by values is preferred by employees. The values help
bind employees and the management amicably.
4. Some of the myths surrounding business ethics are as follows:

 Business ethics has more to do with religion than management
 Ethics cannot be controlled or managed
 Employees who are hired are already ethical, therefore, they do not need more teachings on
business ethics
 Business ethics is practiced by academicians and philosophers
 Some people feel that business ethics is not needed and is only superfluous
 Being ethical means not breaking the law
5. The teleological theory is based on the contention that right or wrong actions are based on
circumstances and the goodness or badness of their consequences. The term ‘teleology’ is taken from
the Greek word ‘telos’, which means ‘goal’ or ‘end’. Hence, teleology is the study of purpose or goals
and is also termed consequentialist ethics. According to the teleological interpretation, the actions,
when taken away from their consequences, become morally neutral. Refer to Section Theories of
Ethics
 https://managementhelp.org/businessethics/index.htm
 https://www.investopedia.com/terms/c/code-of-ethics.asp
 Make a group and visit an organisation. Observe the working culture and the behaviour of the
employees and the management. Note down the observations and corelate them with the following:
 Role of ethics in an organisational culture
 Leadership traits of managers
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UNIT
15 Managing the Ethical Dilemma
Names of Sub-Units
Ethical Dilemma, Characteristics of Ethical Dilemma, Ethical Decision Making, Reasoning and
Resolution Process, Ethical Culture in Organisations, Developing Codes of Ethics and Conduct, Ethical
Value-based Leadership, Ethics in the Indian Business Context, Ethical Dilemma in Business, In
Finance, In HRM, In Marketing, In International Business
Overview
The unit begins by explaining the ethical dilemma, its characteristics and ethics faced by organisations
while making decisions. The unit will also shed light on developing a code of ethics and conduct. It
will also explain ethical value-based leadership. In the end, you will learn about ethical dilemmas in
business and various aspects of an organisation.
Learning Objectives

 Explain the ethical dilemma
 Discuss the characteristics of ethical dilemma
 Describe the ethical decision making
 Analyse the ethical culture in organisations
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Learning Outcomes

 Interpret ethical value-based leadership
 Summarise the developing codes of ethics and conduct
 Delve into the ethics in the Indian business context
 Elucidate the ethical dilemma in business
15.1 INTRODUCTION
An ethical dilemma is a composite situation a person faces in which a decision must be taken about the
adequate action to be taken. A dilemma may arise from the conflict between the good and the bad or
between the right and the wrong of the consequences of the actions. When there are two or more ethical
principles that could lead to an equally good or equally bad outcome, it gives rise to the situation of an
ethical dilemma.
Several methods have been developed and discussed in the chapter to manage ethical dilemmas. For
managing the issue of ethical dilemmas, a business professional has to first outline the situation and
identify the core values. Developing an accountable system, preparing an alternative and monitoring
the consequences would also play a major role in managing ethical dilemma.
15.2 WHAT IS ETHICAL DILEMMA?

An organisation, despite operating ethically, may face several complex situations called ethical
dilemmas. A business professional often comes across ethical dilemmas that arise out of conflicting
interests while making certain business decisions. Ethical dilemma is a situation when a decision maker
needs to choose between two alternatives, both of which are equally right and justifiable. Selecting any
alternative would result in some consequences to the stakeholders.
Various management experts have provided different definitions of ethical dilemma. Some of these are
as follows:
According to Doug Wallace, a dilemma occurs if one has to make a choice among following alternatives:
 Significant value conflict among different interests
 Alternatives are equally justifiable
 Consequences on stakeholders
According to Rushworth Kidder, in ethical dilemma, the toughest choices are right vs. right.
The conceptual aspects of ethical dilemma are related to the complexity of decision making arising out
of a moral situation when a choice is to be made between two different unfavourable options, neither of
which is preferable. The complexity arises out of the situational conflict in which obeying one person or
situation would result in disobeying another person or situation. An ethical dilemma may arise due to:
 Failure of an individual’s character
 Difference between personal values and social standards
 Conflict between personal values and organisational goals
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UNIT 15: Managing the Ethical Dilemma JGI JAIN
Ethical dilemmas can be referred to as the complex situations that involve conflict of moral interests
while choosing from the available alternatives. An individual in an ethical dilemma may have several
questions in his/her mind. Some of them are:
 What should I do?
 What is right and ethical?
 What will be the consequences of my actions and decisions?
 What kind of damage or benefit will result from the chosen way?
 Would I be individually accountable if something goes wrong?
 Who will protect me in case of any legal complications?
In the case of an ethical dilemma, various alternatives are developed for taking a particular decision. In
such a case, there may be confusion regarding the best decision. To overcome this confusion, suggestions
are taken from the stakeholders. The alternative that is accepted by the majority is finally selected.
A business professional can deal with a situation of ethical dilemma by applying:
 Principled thinking resulting into ethical reasoning
 Moral creativity to argue with stakeholders
 Negotiating skills to articulate with stakeholders claiming unethical interests
 'Self-moral values’ identification to set the standards of ethical and unethical
15.2.1 Characteristics of Ethical Dilemma

Ethical dilemmas are one of the common occurrences in business enterprises. They occur when a
professional or manager needs to make a choice between a morally upright choice and an organisational
goal. An ethical dilemma is a moral dilemma that results in a debatable decision-making process,
arising out of a choice between two moral principles, each of which is right. Some of the characteristics
of ethical dilemma are as follows:
 Choice between equally confusing and disagreeable situations; no choice is right or wrong
 Choices come with consequences to the individual, relationships and society
 Cannot be solved but can be resolved
 Indecisive outcomes
 Involves conflict between individual and professional or societal values
 Unavailability of data to support the decision
 Availability of limited resource to handle the confusing situation
15.2.2 Ethical Decision Making, Reasoning and Resolution Process

The frameworks for ethical decision making, reasoning and resolution process in business provides an
overview to the decision maker as to what needs to be done while dealing with ethical issues in business.
The frameworks discussed are such as guides to face ethical issues. However, in the real world, when a
person is faced with ethical dilemmas, his/her personal values come into play.
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JGI JAIN
Ethical reasoning is nothing but interpretation of the situation at hand. These situations result in ethical
differences due to individual interpretation. Ethical decision making, reasoning and resolution process
has two roles, which are as follows:
 Acts that improve the welfare of others: Such acts are praised.
 Acts that harm the welfare of others: Such acts are criticised.
To ensure smooth operations of business, ethical reasoning is essential. Ethics in business is as a backbone,
which provides support to the business by engaging employees to build and retain clients, resulting
in increased financial rewards for the organisation. Ethical reasoning on the part of management is
important to maintain professional relationship with the employees and the external business world.
The steps ethical decision making, reasoning and resolution process are as follows:
1. Take the opinion of other employees whether a business situation would do more harm than good
2. Ensure that the plan to address the business situation respects the moral rights of other employees
3. Collect adequate facts regarding the business issue
4. Check and match the ethical standards decided by the company
5. Implement the decision
6. Invite feedback from employees
15.3 ETHICAL CULTURE IN ORGANISATIONS

Ethical culture is a set of principles that help in differentiating between what is morally right and what
is morally wrong. Business ethics and values are the moral principles that a business uses in daily
transactions. They help to prevent ethical issues that may arise in the day-to-day running of operations,
such as insider trading, corporate governance, bribery, discrimination, corporate social responsibility
and fiduciary responsibilities.
A strong ethical culture in an organisation can curtail the risk of ethical transgression, adverse costs
and consequences that may result from ethical failure. The many high-profile ethical breaches reveal
a wide range of costs. Organisations have witnessed colossal monetary costs in the form of fines or
legal settlements. Costs to reputation have spanned from dissipating confidence in an organisation to
downfall in stock market. In some instances, the cost has also led to the closure of the business.
Ethical culture in organisation helps in shaping the behaviour of employees working in the organisation
therefore, it is essential to recognise the relationship that exists between organisational culture and
organisational behaviour. Moreover, an ethical culture in organisation brings the benefits of promoting
ethical conduct and greater levels of compliance. Eclipsing this is the fact that a strong ethical culture
creates a more trustworthy workplace. In situations of high trust, organisations are likely to enjoy the
advantages of better and faster decision making, greater consistency of responses and decisions, good
confidence in top management action and more individual accountability with less need for policing.
Ethical culture in an organisation can also lend to congenial relationships with stakeholder. All
stakeholders can easily recognise the benefits of dealing with an ethical organisation and they would
place greater value on relationships that are characterised by, for example, honesty, fairness and
respect, than on less trustworthy associations.
15.3.1 Developing Codes of Ethics and Conduct

It is important to have codes of ethics and conduct that emphasises ethical behaviour and develops
standards of behaviour that can be included in the code of ethics. A code of ethics and conduct offers
216
an invaluable opportunity for a responsible organisation to further its positive public identity. This can
lead to a more supportive environment and an increased level of public confidence and trust among
important stakeholder.
A code of ethics and conduct serves as a central guide to help employees make day-to-day decisions
at work. It clarifies organisation’s pillars – its mission, values and principles assisting the employees
in understanding how these pillars translate into day-to-day decisions actions and behaviours. While
some may believe that codes are intended to limit one’s actions, this is not the case. The codes of ethics
and conduct are actually structured.
Well-written codes of ethics and conduct clarifies an organisation’s mission, values and principles,
connecting them to professional conduct standards. The codes ethics and conduct express the values
that the organisation wishes to instil in its leaders and employees, as well as the desired behaviour. As
a result, written codes of ethics and conduct can serve as benchmarks against which individuals and
organisations can measure their performance.
The tone set by demonstrating ethical leadership by managers determines how employees must respond
to ethical challenges. When managers are perceived as trustworthy, trust of the employees increases
and the employees begin to identify themselves with the values of the organisation.
15.3.2 Ethical Value-based Leadership

Leadership is an important practice in making the organisations successful. Without the leadership
skills, managers cannot work effectively and efficiently. As effective leaders, they are accountable for
persuading followers to take actions, complete the assigned tasks and behave in a positive manner.
Ethical values-based leadership is the concept that leaders should be guided and motivated by their
own and others’ values, including those set for their organisation. People are generally driven by values
and live according to their convictions, according to the values-based leadership concept. As a result, it
is critical that organisation understand values, work style and goals.
The essential traits of ethical leaders as per leadership researchers may include trustworthiness, just,
honest, integrity, good relationship orientation, confident, loyal, transparent and impartial. Leadership
is best defined as encouraging and assisting “people” in moving in a new direction or vision. Managers
are concerned with transactions and things, whereas leaders are concerned with relationships and
people. Some of the important elements in ethical value-based leadership are:
 Values: For ethical leadership, it is important for the leader to understand the core values and
commitment within himself as an individual.
 Vision: Leaders must have a vision and goals, and the ability to fulfil their goals in a manner that
must meet all the objectives of ethical behaviour.
 Voice: Ethical leaders must be able to articulate their vision to others in a genuine way that motivates
them into action.
 Virtue: Ethical leaders strive to do what is right and good. They practise virtuous behaviour by
introspecting and asking questions such as “How are my values, vision and voice are in alignment
with the overall organisational goals?”.
15.4 ETHICS IN THE INDIAN BUSINESS CONTEXT

The fact that most firms in India act ethically most of the time is something that most people are
unaware of. It is a common perception that a business cannot be run ethically under current conditions
and so most businessmen would be essentially unethical.
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JGI JAIN
India is a diverse country that thrives as a result of this. It is a multilingual and multicultural society with
only a sliver of a difference between the north and south of India. It is extremely difficult to generalise
the market due to the diversity of languages, cultures and religions. Business culture in India varies
depending on the type of business and the strata at which it is conducted.
India had a rich ethical tradition which can be traced since our ancient time. Our holy books such
as Vedas, Gita and the Upanishads preached about ‘Nishkam Karma’, i.e., doing one’s duty sincerely
without any expectation of results. Results are nothing but the outcome of our deeds (Karma). From the
ancient period to modern time, India had been great advocate of ethical practices in every aspect of life.
As far as business practices are concerned, India had set many examples of ethical corporate behavior
in due course of time.
15.5 ETHICAL DILEMMA IN BUSINESS

An organisation, despite operating ethically, may face several complex situations called ethical
dilemmas. A business professional often comes across the ethical dilemmas that arise out of conflicting
interests while making certain business decisions. Ethical dilemma is a situation when a decision maker
needs to choose between two alternatives, both of which are equally right and justifiable. Selecting any
alternative would result in some consequences to the stakeholders.
Most of the business professionals face ethical dilemmas at work. These dilemmas are a result of
conflicting and competing interests, pressure to achieve targets and cultural differences. Many business
professionals and leaders feel that they were not prepared to tackle the dilemmas and felt bounded
to take decisions that they may regret later. There are various challenges and contradictions which
impact the ability of a professional to act ethically.
An organisation can be considered as a structure created by combining various departments or
functions, such as Financial, HR and Marketing department. The personnel working in each department
may face different types of ethical dilemmas. Let us explore the kinds of ethical dilemma faced by various
functional departments in organisations.
15.5.1 In Finance
Organisations face various issues of ethical dilemmas, such as fabricated statement of accounts and other
financial records. Practice of ethics in finance and accounting ensures the moral decisions regarding
the preparation, presentation and revelation of financial information. It is necessary for the finance
and accounting professionals to conduct themselves ethically to achieve individual, organisational and
societal objectives all at the same time.
During the past few years, several national and international accounting scandals have occurred that
put a serious question mark on the accountability of finance and accounting professionals. Several
organisations, such as Enron, Tyco, Global Crossing, Quest, Xerox and Adelphia, were involved in
unethical practices by using wrong and manipulative accounting information.
The principal-agent relationship is an arrangement between two parties, in which one acts as the agent
for the other and carries out the transactions on behalf of the other. Irregularities in the conceptual
framework of financial theories and extensive use of the principal-agent association in financial
transactions have given rise to ethical conflicts and ethical dilemmas.
The principal-agent relationship has gained popularity in the modern financial and economic conditions.
This is because people generally have limited knowledge and time to carry out financial services on their
own. From the management of retirement benefits, to investment in markets, to protection against
risks through insurance and savings; everything is managed by the principal-agent framework.
218
This over dependence (by principal) on the agency services and lack of proper information to monitor
agent behaviour on one hand and selfish human behaviour (of the agent), on the other hand, have given
rise to ethical conflicts and problems in the finance arena.
Let us discuss some of the causes of ethical dilemmas in finance:
Conflict of Interest
The ethical dilemmas in finance mainly relate to conflict of interest. A few examples are as follows:
 Pressure from management to manipulate financial statements
 Accommodate financial fraud perpetrated by a relative or friend
 Pressure from clients to manipulate financial statements
 Accommodate unqualified audit report
Pressure from Management

 Pressure from management to support wrong balance sheet.
 Management wants to see a healthy balance sheet, high income reports and good cash balances.
 Accountants may unethically alter the company’s financial records. They may manipulate numbers
to create a false positive impression of the organisation.
Self-Centredness
 Where a person stands to profit from a falsified activity or transaction
 Where the person would get a bonus, promotion, etc., if the company is seen to be doing good
Human Emotions
 An accounts or finance practitioner may be reluctant to report any financial violations of the
organisation as it may lead to negative situation for himself.
 No one wants to be the reason for an employee losing his/her job as a result of adverse report.
The course of action that can be adopted in case of ethical dilemma in finance are as follows:
 Stay focussed on the facts of the issue and put aside emotions
 Analyse the consequences of your decision
 Identify the ethical issues and company policy related to it
 Always prefer the supplier who will advance a line of credit rather than a non-credit-worthy company
 Always adhere to the professional code of conduct
 The main concern should be the long-term goal of the company
15.5.2 In HRM
Ethical issues faced by HR personnel include unfair compensation, inequitable performance appraisal
and discrimination of employees on the basis of age, gender, religion or disability. These factors lead
to employee dissatisfaction and may negatively affect the employee motivation and organisational
performance. Some of the causes which create the situation of ethical dilemma for HR personnel
219
JGI JAIN
are organisational transformation, behaviour of policy-making persons, role conflicts, precision in

reporting and favouritism by organisation’s management.
It is unethical to make distinction among individuals on the basis of caste, colour, sex and creed while
selecting them for jobs. Such discrimination is generally based on personal perceptions of the recruiter.
For example, a recruiter may be more inclined to select a candidate who belongs to the community to
which he/she belongs. It is a serious unethical practice related to HRM as the selection should rather
be done on the basis of skills, performance, education, experience and knowledge. Such unethical
practices affect the productivity and quality of tasks within an organisation. Moral codes, experience
and individual perspective of an HR personnel play a major role in dealing with the situation of ethical
dilemma. An HR person must always ensure that his/her decision reflects on a full range of potential
solutions and their possible consequences.
Ethical dilemmas exist in performing various functions of human resource management. Some of these
are explained as follows:
 Performance appraisal: Performance appraisal is the process of evaluating the performance of
employees in relation to the set objectives and standards. Performance appraisal assesses the worth
of an employee for an organisation. Ethical dilemmas exist in this area too. As the process of appraisal
is carried out through observation and judgement (superfluous reporting of traits, underrating on
the basis of caste, religion or community), there are chances that the assessor makes an error doing
injustice to the employee. Therefore, it should be ensured that the decision regarding assessment is
honest and trustworthy.
 Employee turnover: Employee turnover occurs when employees switch their present jobs for better
career growth and higher prospects. Traditionally, both the employers and the employees valued
a long tenure association, as they believed that with long-term association, employees developed
their skills and knowledge, which eventually paid rich dividends to the organisation. However,
this scenario has changed with the changes in the technology and systems. Now, employees are
in constant search for better-paying jobs and career growth. Organisations also pay better to
such candidates and do not mind if someone quits. This may create an ethical dilemma for the HR
Manager as he/she would be faced with questions from the existing employees if a new employee in
the similar role is paid better.
15.5.3 In Marketing
Ethical issues in marketing include moral and ethical principles and problems arising in the marketing
environment. Carrying out ethical marketing practices is very important for an organisation because
any unethical action of an organisation’s part may damage the image of the organisation in the market.
Ethical issues in marketing include negative aspects such as false claiming of product features and
unfair competitive strategies.
For example, in 2010, Dannon advertised its Activia brand of yogurt as being clinically and scientifically
proven to boost human immune system and aid in digestion. The advertisement featuring actress Jamie
Lee Curtis claimed that the yogurt had special bacteria. Due to this additional quality, it was sold at 30%
higher prices than other similar products. The advertisement was reported and investigated in which
it was found that the claims of the company were unproven. Advertisements containing such flawed
statements to promote a product are considered deceptive and factually inaccurate. In case of ethical
dilemma, marketing professionals may introspect and find answers to the following questions:
 How far can you go in stealth marketing?
 Can you sell customer information?
220
 Should you recall a flawed product?

 Whether the product comparisons are fair and factual or not?
Ethical dilemmas in marketing are related to the following issues:

 Product-related: These issues occur when marketers face ethical issues related to products, such
as features, value, usage and associated risks. This happens when marketers are not sure about the
quality of the product. Product-related ethical issues may also relate to: Packaging and labelling
practices, Maintaining quality standards for products and Product safety.
 Promotion-related: Promotion of products through mass media can promote the image of a brand
or an organisation if used properly. It helps in promoting products and other offerings, which are
produced and distributed to a large audience. It is, therefore, important not to overlook social,
ethical and legal aspects of promoting a product or service through mass media. For instance, the
Indian law prohibits the advertisements that promote the uses of cigarettes and alcoholic drinks.
Any advertisement that shows magical or supernatural ways to cure any illness or disease is not
permitted either. Misleading advertising and sales promotion stunts are major unethical practices
followed at product/service promotional level.
 Price-related: If marketing professionals indulge in unethical marketing practices, they may lose
customers forever. Marketing professionals are very particular about price fixing. Bid rigging,
deceptive pricing, unfair pricing, price discrimination, price skimming and dumping of products
should be avoided to overcome the issue of the ethical dilemma in marketing.
15.5.4 In International Business

There are various ethical issues recognised in international business, some of which are fundamental
sources of ethical dilemmas. Let us now discuss the sources of ethical dilemmas in international business.
One of the most important ethical dilemmas that international managers face is that of corruption,
which includes paying bribes to government officers, different political parties, influential persons, in
the absence of which it becomes difficult for the organisations to carry out their international business.
The amount of money that the organisations have to pay as bribe could otherwise be used for other
important organisational tasks.
For example, it was reported that Lockheed Martin Corporation, an American global aerospace, defence,
security and advanced technologies company, had paid bribe to Japanese politician and businessman.
Apart from corruption, multinational organisations also suffer as a result of industrial reconnaissance.
It means that many organisations obtain information about the competitors’ or rivals’ activities through
unethical means. Multinational organisations work in different countries and they create different
policies with respect to different HR functions such as recruitment, promotion and remuneration for
each country or region. It means that they behave differently with the employees in different countries.
A lot of organisations deliberately hide certain product information from its consumers. For example,
McDonald’s, world’s leading fast food chain, faces the allegation that it promotes a diet of fast food which
is a major contributor to escalating rates of obesity. It has also been accused of misleading consumers
about the health-related aspects of its products.
In relation to multinational organisations, it can be stated that if they continue to behave ethically,
they may not yield the desired results initially, but in the long run, ethical practices would surely lead
them to success. On the contrary, while unethical practices may bring in immediate benefits for the
organisation, it would most probably lead to losses in the long run. Most of the dilemmas faced by
221
multinational organisations can be solved if they adopt the practice of respecting basic human rights
and local culture.
 Several methods have been developed and discussed in the chapter to manage ethical dilemmas.
For managing the issue of ethical dilemmas, a business professional has to first outline the situation
and identify the core values.
 Developing an accountable system, preparing an alternative and monitoring the consequences
would also play a major role in managing ethical dilemma.
 An organisation, in spite of operating ethically, may face a number of complex situations called
ethical dilemmas.
 A business professional often comes across the ethical dilemmas that arise out of conflicting
interests while making certain business decisions.
 Ethical dilemma is a situation when a decision maker needs to choose between two alternatives,
both of which are equally right and justifiable.
 Selecting any alternative would result in some consequences to the stakeholders.
 Ethical dilemmas are one of the common occurrences in business enterprises. They occur when
a professional or manager needs to make a choice between a morally upright choice and an
organisational goal.
 An ethical dilemma is a moral dilemma that results in a debatable decision-making process, arising
out of a choice between two moral principles, each of which is right.
 The frameworks for ethical decision making, reasoning and resolution process in business provides
an overview to the decision maker as to what needs to be done while dealing with ethical issues in
business.
 Ethical culture in organisation helps in shaping the behaviour of employees working in the
organisation, therefore, it is essential to recognise the relationship that exists between organisational
culture and organisational behaviour.
 An ethical culture in organisation brings the benefits of promoting ethical conduct and greater
levels of compliance.
 It is important to have codes of ethics and conduct that emphasises ethical behaviour and develops
standards of behaviour that can be included in the code of ethics.
 A code of ethics and conduct offers an invaluable opportunity for a responsible organisation to
further its positive public identity. This can lead to a more supportive environment and an increased
level of public confidence and trust among important stakeholder.
 A code of ethics and conduct serves as a central guide to help employees make day-to-day decisions
at work. It clarifies organisation’s pillars – its mission, values and principles assisting the employees
in understanding how these pillars translate into day-to-day decisions actions and behaviours.
15.7 GLOSSARY
 Ethical culture: It is a set of principles that help in differentiating between what is morally right and
what is morally wrong.
222
 Code of ethics and conduct: It serves as a central guide to help employees make day-to-day decisions
at work.
 Ethical values-based leadership: It is the concept that leaders should be guided and motivated by
their own and others’ values, including those set for their organisation.
 Stakeholders: An individual, group or association that has interest or concern in an organisation.
Stakeholders can influence or be influenced by the association’s activities, objectives and policies.
 Emotional intelligence: A capacity to comprehend the manner in which individuals feel and respond
and to utilise this ability to make great decisions and to evade or take care of issues.
15.8 CASE STUDY: USING CORPORATE ETHICAL VALUES FOR ACHIEVING

COMPETITIVE ADVANTAGE
Case Objective
This case study showcases how ethical values can help an organisation gain competitive advantage
in business world.
Whole Foods Market Inc. is an American organisation which operates a chain of supermarkets. It
sells products free from artificial colours, flavours, preservatives and sweeteners. Whole Foods is the
sole grocer in the USA that is certified by the United States Department of Agriculture (USDA). It is
headquartered in Texas, the USA. John Mackey is its present CEO.
Whole Foods Market has been growing its business of quality food and endeavours to set the standards
of excellence for food retailers. It has modelled its business in a manner that standards have been set for
all the aspects of the organisation.
The mission/purpose statement of the organisation is as follows: Our purpose is to nourish people
and the planet. We’re a purpose-driven company that aims to set the standards of excellence for food
retailers. Quality is a state of mind at Whole Foods Market.
The organisation has determined for itself a set of six core values that give an idea of what is truly
important for an organisation. These six core values include:
1. Selling the highest-quality natural food and organic food
2. Satisfying and delighting customers
3. Promoting the growth and happiness of team members
4. Establishing win-win partnerships with suppliers
5. Creating profits and prosperity
6. Caring for the community and the environment
To implement its core values, Whole Foods has created a “Declaration of Interdependence”. According to
this Declaration of Interdependence, Whole Foods Market is a dynamic leader in the business of quality
food and it also aims to set high standards of excellence for food retailers. The organisation has adopted
the mantra of “quality is a state of mind”. This mantra guides all the employees of Whole Foods to ensure
adherence to the organisation’s core values in performing all their activities such as in selling food,
hiring employees and interacting with the customers.
223
JGI JAIN
Whole Foods implements its core values in action by practicing the following:
 Product excellence: Organisation states that it acts as a buying agent for its customers and not as
a selling agent for its manufacturers. Whole Foods also ensures that it offers to its customers the
highest-quality natural and organic products available.
 Customer experience: Whole Foods focusses on providing extraordinary customer service,
education, meaningful value at competitive prices and retail innovation as well as inviting store
environments to its customers.
 Employee involvement: Whole Foods empowers its employees by providing innovative work
environment and creating self-directed teams. In addition, Whole
Foods gives importance to transparency in information.
 Success: Organisation emphasises on profits and growth, and on creating wealth for its shareholders.
 Sustainable outcomes: Whole Foods believes in sustainable business practices. As a result, it cares
for the environment and invests in local communities.
 Win-win supplier partnerships: Whole Foods has created strategic partnerships with its suppliers.
These suppliers are also committed to achieve excellence and fulfil their social responsibilities.
 Ongoing education: Whole Foods continually educates all its internal and external stakeholders
with respect to healthy eating patterns and practices.
The adherence shown by Whole Foods with its core values has reaped positive outcomes. In one of
his interviews, John Mackey stated, “We walk our talk when it comes to our core values. Our primary
goal is to satisfy and delight our customers. Through constant experimentation and innovation, we
are redefining the retail food marketplace and further differentiating our shopping experience from
other food retailers. We continue to expand and adapt our product offering in ways that speak to our
core customers and to our authenticity and leadership role within natural and organic products.” Some
other easily noticeable results include:
 Successful business model
 Benefits accrued to all stakeholders
 Higher sales growth
 Increase in the number of stores
 Increase in store sales
 Increased sales per square foot
Source: http://dmresourcecenter.com/unit-5/core-values/
Questions
1. List the values Whole Foods has adopted specifically for its employees.
(Hint: Promoting the growth and happiness of team members.)
2. What does the “quality is a state of mind” mantra imply for the organisation?
(Hint: The stated mantra guides all the employees of Whole Foods to ensure adherence to
organisation’s core values while performing all their activities.)
3. List out any one core value of the organisation.
(Hint: Product excellence: Organisation states that it acts as a buying agent for its customers and
not as a selling agent for its manufacturers.)
224
4. What were the positive result of adherence to ethics?

(Hint: Successful business model, Benefits accrued to all stakeholders, Higher sales growth, etc.)
5. What Whole Foods asked its employees to stick to?
(Hint: Ensure adherence to the organisation’s core values in performing all their activities.)

1. Explain ethical dilemma.
2. What are the characteristics of ethical dilemma?
3. Explain briefly about ethical culture.
4. What is ethical values-based leadership?
5. What is ethical dilemma in business?

1. An organisation, despite of operating ethically, may face a number of complex situations called
ethical dilemmas. A business professional often comes across the ethical dilemmas that arise out of
conflicting interests while making certain business decisions. Ethical dilemma is a situation when
a decision maker needs to choose between two alternatives, both of which are equally right and
justifiable. Refer to Section What is Ethical Dilemma?
2. An ethical dilemma is a moral dilemma that results in a debatable decision-making process, arising
out of a choice between two moral principles, each of which is right. Some of the characteristics of
ethical dilemma are as follows:
 Choice between equally confusing and disagreeable situations, no choice is right or wrong
 Choices come with consequences to the individual, relationships and society
 Involves conflict between individual and professional or societal values
 Unavailability of data to support the decision
Refer to Section What is Ethical Dilemma?
3. Ethical culture is a set of principles that help in differentiating between what is morally right and
what is morally wrong. Business ethics and values are the moral principles that a business uses in
daily transactions. They help to prevent ethical issues that may arise in the day-to-day running of
operations such as insider trading, corporate governance, bribery, discrimination, corporate social
responsibility and fiduciary responsibilities. Refer to Section Ethical Culture in Organisations
4. Ethical value-based leadership is the concept that leaders should be guided and motivated by their
own and others’ values, including those set for their organisation. People are generally driven by
values and live according to their convictions, according to the values-based leadership concept. As
a result, organisation must understand values, work style and goals. Refer to Section Ethical Culture
in Organisations
225
5. An organisation, despite of operating ethically, may face several complex situations called ethical
dilemmas. A business professional often comes across ethical dilemmas that arise out of conflicting
interests while making certain business decisions. Ethical dilemma is a situation when a decision-
maker needs to choose between two alternatives, both of which are equally right and justifiable.
Selecting any alternative would result in some consequences to the stakeholders. Refer to Section
Ethical Dilemma in Business
 https://www.tandfonline.com/doi/abs/10.1080/03637756609375487?journalCode=rcmm19
 https://moodle.sbu.edu/pluginfile.php/92544/course/overviewfiles/Clare%20304%20Ethics%20
and%20Ethos.docx?forcedownload=1
 Discuss how the marketing department of a service organisation can conduct its operations in an
ethical manner
226

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UNIT

Concept of Communication, Importance of Communication, Process of Communication, Types of

In this unit, you will learn to:

At the end of this unit, you would:

Pre-Unit Preparatory Material

1.2 CONCEPT OF COMMUNICATION

1.2.1 Importance of Communication

1.2.2 Process of Communication

Figure 1: Elements of Communication

Let us discuss each of these elements in detail.

1.2.3 Types of Communication

Based on the Target • Internal Communication

Based on the Purpose • Formal Communication

Figure 2: Different Types of Business Communication

Internal and External Communication

Let us discuss these two types of communication in detail:

Figure 3: Types of Internal Communication

Formal and Informal Communication

Verbal and Non-Verbal Communication

Written and Visual Communication

1.2.4 Principles of Effective Communication

Figure 4: The 7Cs of Effective Communication

1.2.5 Addressing the Barriers to Communication

Organisational Personal Other

 Unfavourable  Stereotyping  Use of jargon

Figure 5: Barriers to Business Communication

Barriers to business communication hamper the smooth functioning of organisational activities.

1.3 TECHNOLOGY AND BUSINESS COMMUNICATION

Conclusion 1.4 CONCLUSION

 Communication can be described as a process of expressing and transmitting ideas, thoughts,

 Selective listening: A practice of listening only to what is desired.

1.6 CASE STUDY: LACK OF COMMUNICATION LEADING TO MISUNDERSTANDING

1.7 SELF-ASSESSMENT QUESTIONS

A. Essay Type Questions

1.8 ANSWERS AND HINTS FOR SELF-ASSESSMENT QUESTIONS

A. Hints for Essay Type Questions

@ 1.9 POST-UNIT READING MATERIAL

1.10 TOPICS FOR DISCUSSION FORUMS

 Discuss the significance of communication for an organisation.

02 Oral and Non-Verbal Communication

Introduction to Oral Communication, Public Speaking, Non-verbal Communication, Business

In this unit, you will learn to:

At the end of this unit, you would:

Pre-Unit Preparatory Material

2.2 INTRODUCTION TO ORAL COMMUNICATION

2.2.1 Public Speaking

2.3 NON-VERBAL COMMUNICATION

Table 1: Relationship between Vocal, Non-vocal, Verbal,

Verbal Communication Non-verbal Communication

Vocal Spoken words Paralanguage (pitch, volume, speaking rate, etc.)

Non-verbal communication has a distinct evolutionary history compared to verbal communication.

Figure 1 shows the various functions of non-verbal communication:

Figure 1: Functions of Non-verbal Communication

Figure 2: Features of Non-verbal Communication

Let us discuss these distinguishing features of non-verbal communication as follows:

Table 2: Differences Between Verbal Communication and Non-Verbal Communication

Feature Verbal Communication Non-verbal Communication

2.3.1 Business Etiquettes

Conclusion 2.4 CONCLUSION

2.6 CASE STUDY: THE DEBATE THAT CHANGED POLITICS

2.7 SELF-ASSESSMENT QUESTIONS

A. Essay Type Questions