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INDE047 – Business
Management for Engineers
Part I
Mohammad Tawfik
November 2013
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Organizations
Psychology, Leadership,
Creativity, Conflicts, Destructive
Behavior
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to Win Friends and
Influence People
Dale Carnegie
1937

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Fundamental Techniques In
Handling People

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Give honest and sincere appreciation

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Arouse in the other person an eager want

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Six Ways To Make People
Like You

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Smile!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Remember Names

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Encourage others to talk about
themselves

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Talk in terms of the other person's
interests

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Make the other person feel important

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Win People To Your Way Of
Thinking

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
The only way to get the best of an
argument is to avoid it

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Show respect for the other person's
opinions

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Get the other person saying "yes, yes"
immediately

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Let the other person do a great deal of
the talking

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Let the other person feel that the idea
is his or hers

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Try honestly to see things from the
other person's point of view

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Be sympathetic with the other
person's ideas and desires

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Appeal to the nobler motives

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Dramatize your ideas

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Throw down a challenge

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Be a Leader

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Begin with praise and honest
appreciation

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Call attention to people's mistakes
indirectly

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Talk about your own mistakes
before criticizing the other person

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Ask questions instead of giving
direct orders

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Let the other person save face

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Praise the slightest improvement
and praise every improvement

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Give the other person a fine
reputation to live up to

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Use encouragement

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Leadership and Motivation

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Lead, follow, or get out of the
way!
Thomas Paine

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
The first basic ingredient of
leadership is a guiding vision
Warren Bennis

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What is leadership?

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Leadership is influence,
nothing more, nothing less
John C. Maxwell

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
If your actions inspire others
to dream more, learn more,
do more, and become more,
you are a leader
John Quicy Adams

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Leaders should …

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Have a Vision

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Have a Vision

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Set Goals

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Set Action Plans

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Monitor and Help

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Build Teams

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Gather People

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Create Loyalty

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Help and Care

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Delegate

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What?

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Routine Tasks

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Tasks that develop people

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Occasional Duties

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Outside his areas of expertise

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How?

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Clear

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Specific

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Share Setting

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Inform

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Monitor

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Who?

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Willing

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Able

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Learner

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Looks for challenge

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Develop People

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Leaders Create Leaders

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Identify Competencies

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Understand Needs and
Style

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Motivating People

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Laws of Motivation
Richard Denny

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
1- To Motivate you have
to be Motivated

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Motivating Yourself

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
You must manage yourself
before you can lead others
Zig Ziglar
1926-2012

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Set Goals

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Seize the moment to act

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Have persistence

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Build your Willpower

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
2- Motivation Requires a Goal

“I will only
settle for
world
INDE047 – Business Management
for Engineers: Part
domination” I
Mohammad Tawfik, PhD
3- Motivation Never Lasts

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
4- Recognition Motivates

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
4- To Motivate, Recognize
Needs

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
●

Basic human needs
Leave a
legacy

Live

Learn

Love

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to De-Motivate?

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Focus on rewards!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Do not give enough trust!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Reward the wrong attitude!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD

Do not communicate!
Focus on Cost!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to Motivate?

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
The SCARF Model
David Rock

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Status

Fairness

Certainty

Motivate
by:
David Rock
“Your Brain at Work”
Relatedness

Autonomy

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What Motivates People
Daniel Pink

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Autonomy

Motivation

Purpose

Mastery

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Innovation!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Innovation is the key!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Bringing creative ideas to life

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
WARNING!
• Nothing really insures that you will get an
innovative idea in any field, rather,
suggestions of things that you may do can
increase the possibility of getting one

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Curiosity!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Explore!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Serendipity!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Diversify the search!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Network!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Exercise hunting ..

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Exaptation

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Be Agile …

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Love your mistakes…

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Study them …

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Even celebrate them!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Some noise is not so bad after
all …

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
I said “some” … not all!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
The Russian nesting dolls!

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Empty the bag …

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Destructive habits in
organizations and projects

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Why Do Good Companies Go Bad?
• In a nutshell: Good companies fail when
they are unable or unwilling to change
when their external environment changes
significantly.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Denial

Turf
Wars

Volume
Obsession

Arrogance

7
Habits

Competitive
Myopia

Complacency

Competence
Dependence

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Denial

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What leads to Denial?
• Denial of emerging technologies.
Denial of changing consumer tastes.
Denial of the new global environment

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Signs of Denial
• “Hey, we’re different, so there’s no way
it can happen to us.”
The company is too proud to admit that
someone else has come up with a better
way.
The company ignores, rationalizes, or
blames others for its situation instead of
admitting its fault.
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break the habit of denial
Look for it

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break the habit of denial

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break the habit of denial

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Arrogance

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What is Arrogance?
• Offensive display of:
Superiority
Self-importance
Pride
Disdain (contempt)
… because of an inflated sense of self

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What leads to Arrogance?
• Exceptional achievement in the past
David conquers Goliath
The company pioneers a product or
service

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Signs of Arrogance
• The company stops listening
The company becomes extravagantly
eager to show off.

The company begins to act like a bully,
both internally and externally.
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Signs of Arrogance
• The company becomes high-handed and
abuses rules
The company favors those who validate its
views and gets rid of those who are
critical.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break the habit of
arrogance?
• Rotate management to new challenges.
Implement nontraditional succession
planning.

Diversify the talent.
Change the leadership.
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Complacency
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What is Complacency?
• Complacency is the sense of security and
comfort that derives from the belief that
the success that’s taken place in the past
will continue indefinitely.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What leads to Complacency?

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What leads to Complacency?

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Signs of Complacency
• The company is in no hurry to make
decisions.
The company’s processes are overly
bureaucratic.
Everybody has to get on board before a
decision is made.
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Signs of Complacency
• The company is completely vertically
integrated.
Enormous cross-subsidies are in place –
by functions, by products, by markets, by
customers. Average costing and average
pricing prevail.
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break Complacency?
• Reengineer to achieve high quality,
eliminate waste, and reduce inefficiency.
Decentralize profit and loss by creating
and molding business units around
products or geographies.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break Complacency?
• Outsource – contract out all non-core
functions.
Reenergize – consider a new leader with a
positive, opportunity-oriented vision

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Competency Dependence

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What is Competency
Dependence?
• Somebody else can be doing a better job,
and if a company is unable to figure out
what to do, it has become competencydependent

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What leads to Competency
Dependence?
• R&D dependence
Design dependence
Sales dependence
Service dependence

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Signs of Competency
Dependence
• Reengineering, reorganization, retooling
have been tried and still no good results.
The thrill is gone and the company is in a
funk.
Stakeholders are leaving
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break Competency
Dependence?
• Find new applications where the same
competency results in new value.
Determine new markets where the same
competency remains an asset.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break Competency
Dependence?
• Expand the range of your competencies
by moving up or down the value chain.
Refocus company resources into areas
with more growth and profit potential.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Competitive Myopia

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What is Competitive Myopia?
• When they define their competition too
narrowly and acknowledge only direct and
immediate competitors

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What leads to Competitive
Myopia?
• The natural evolution of the industry.
.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What leads to Competitive
Myopia?
The clustering phenomenon.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Signs of Competitive Myopia
A company allows small niche players to
coexist with it.
The loyalty of a company’s supplier is won
by a nontraditional competitor.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Signs of Competitive Myopia
New entrants, especially those from
emerging economies, are underestimated.
The company becomes helpless against a
substitute technology.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break Competitive
Myopia?
Broaden the scope of the product or
market.
Consolidate to squeeze out excess
capacity.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break Competitive
Myopia?
Counterattack the nontraditional
competitors.
Refocus on the core business to
concentrate limited resources in the most
successful area.
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Volume Obsession

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What is Volume Obsession?
• Too much money is being spent for the
company to make money.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What leads to Volume
Obsession?
The high-margin pioneer.
The fast-growth phenomenon

The paradox of scale.
The ball and chain of unintended obligations

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Signs of Volume Obsession
Guideline-free, ad hoc spending.
Functional-level cost centers.

A culture of cross-subsidies.
Stakeholders say numbers are not good.
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break Volume
Obsession?
Identify where the company’s costs are.
Convert cost centers into revenue centers
or profit centers.
Move from vertical integration to “virtual
integration”.
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break Volume
Obsession?
Outsource non-core functions.
Reengineer to automate processes to
improve cost efficiency.

Implement target costing
Become a world-class customer.
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
The Territorial Impulse

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What is Territorial Impulse?
• As companies grow they tend to organize
themselves into “functional” and later
“regional silos”. However, the various
units into which companies organize
themselves don’t always get along well
with each other, for various reasons.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What leads to Territorial
Impulse?
The corporate ivory tower.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What leads to Territorial
Impulse?
Growth requires the institution of formal
policies and procedures.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What leads to Territorial
Impulse?

The informal, spontaneous culture is
extinguished.
INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
What leads to Territorial
Impulse?

A company’s culture is dominated by one
functional specialty.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Signs of Territorial Impulse
Dissension - a lot of headstrong
lieutenants instead of one strong general
Indecision – decision-making is an
agonizing or even impossible process

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Signs of Territorial Impulse

Confusion – one side doesn’t know what
the other side is up to

Malaise – nobody’s happy

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break Territorial
Impulse?
The leader must bring all the people
together in a common cause.
Rotate the people in and out of different
functional or geographic silos.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
How to break Territorial
Impulse?
Create permanent cross-functional teams.
Reorganize around customers or products
rather than around function or geography.

INDE047 – Business Management
for Engineers: Part I
Mohammad Tawfik, PhD
Conflict Management

●

Based on the lectures on “The art of Conflict
Management” by Michael Dues, the teaching
Company
Understanding Conflict
What is a conflict?
●

●

“An expressed struggle between at least two
interdependent parties who perceive
incompatible goals, scarce resources, and
interference from others in achieving their
goals.”
Or Simply: “discomforting difference.”
Elements of Conflict
●

Interdependence
Elements of Conflict
●

Difference
Elements of Conflict
●

Opposition
Elements of Conflict
●

Expression
Elements of Conflict
●

Emotion
Conflict may be useful!
●

Bringing to the surface, problems that were not
clear before
Most conflicts rise on how to reach the goal
not on the goal itself
To reach win-win resolution ...

●

Identify common goals
To reach win-win resolution ...

Treat conflicts as a challenges that you can work on
together to achieve a solution for both.
Perhaps our greatest limitation in working toward
win-win solutions is that each of us comes to the
table with deep-seated ideas about conflict and
powerfully ingrained strategies.
Conflict does not arise so
much from a difference
itself but from the
perception we have of
that difference
To reduce conflict ...

Try to see situation from the other person's
perspective
Almost all of us tend to attribute mistakes or
failings on our part to external events
... but we also tend to attribute the behavior of
others to their own character or emotions
We’re really emotional beings who have evolved
an ability to reason that helps us deal with our
emotions.
Remember that emotion is an internal fact; it’s a
response to perceptions you are having
Being angry is not the same as acting on your
anger
Power

How Much We Need and How to Use It?
What is Power?
●

Power can be defined as the ability to cause or
influence an outcome.
What is Power?
●

Notice the difference between “influence” and
“control”!
Kinds of Power
●

Personal power, such as talents, skills, or
knowledge that we may have;
Kinds of Power
●

Relational power, that is, the power that derives
from the nature of the relationship between the
parties;
Kinds of Power
●

Situational power, the conditions in the conflict
situation that give power to one party or one
issue more than another
Five Bases of Power
John French and Bertram Raven
Reward power
Coercive power
Legitimate power
Referent power
Expert power
The important point to remember is that both
parties have power in any conflict and that
power derives from the interdependence
between the two parties in general and the
particular situation they are in
For conflict resolution ...
●

You do not need more power!
●

You need sufficient interdependence!!!
The more equal the conflicting parties are in
power, the better the chances are of working out a
win-win resolution
Conflict Styles

Thomas and Kilmann
Avoidance

Competition

Compromise
Accommodation

Collaboration
Dysfunctional Conflict Strategies
Avoidance
Withdrawal
Imposition
Triangulation
Manipulation
Absolute framing
Revenge
Compromise
Principles for Win-Win Negotiations
Roger Fisher and William Ury
Separate people from the problem

Focus on events or behaviors rather than the parties
involved.
Focus on interests, not positions

Do not take a position and defend it or bargain for it but to
focus on the interest behind the position
Generate options for mutual gain

Brainstorm for multiple options, keeping in mind the
goal of mutual gain
The choice of objective criteria

Try to identify measurable ways to assess the value of the
suggestions
Identify your BATNA

Best Alternative to Negotiated Agreement
Preparing for Negotiation
Conditions of Negotiation

You are willing
and Able to
Negotiate

Other Party is
willing and
Able to Negotiate
Step 1
Define the conflict issue (What and Why)
Step 2
Identify and evaluate your goals
Why do I want to resolve this conflict?
What is a good resolution for me?
How important is it to me that I reach this
resolution?
How do I want to be viewed by the other party?
How does this situation affect the way I view
myself?
Step 3
Do you want to resolve the issue by negotiating?
Consider the degree of interdependence
Consider your leverage

The ability to influence the other side to move closer to one's negotiating position
Consider the context of the potential negotiation
Consider the nature of your relationship
Consider the risks of introducing the issue
Consider BATNA
Step 4
Arrange a meeting with the other party
Negotiating Conflict Resolutions
Step 5
Conduct the meeting
Step 6
Make a contract
The contract must be clear
The contract must address voluntary behavior
from the present forward
The contract must be an unequivocal agreement
Step 7
Follow through on the contract
Pay attention to the other party compliance with
the agreement
If the other party is in compliance, you should
express your appreciation
If the other party is not following the agreement,
you should arrange another meeting
Managers and Conflict
Management
All organizations are like living organisms,
constantly moving, changing, and interacting, and
a change in any one element affects the
organization as a whole
Some parts of the system operate informally and
unofficially
Managers and supervisors must improve conflict
management within the organization in order to
minimize costs.
Seven key principles that can guide top
supervisors and managers ...
1- Prevent unnecessary conflict ...
Caused by creating competitive situations
Caused by failing to clearly define roles and
responsibilities
Caused by failing to establish areas and lines of
authority
Caused by making decisions without consulting
the stakeholders
2- Be courageous in the face of conflict
3- Focus on the general pattern of conflict
management in the organization
4- Promote informal resolution of conflict
by creating policies that state a preference for
resolution by discussion, although with authority
still specified for making final decisions
5- Formal processes need to be in place for
conflict management
6- Assess and improve on the organizational
culture
7- Model the behaviors they desire in conflict
management
Moral and Cultural Conflicts
Moral conflicts are those in which the issues are
framed as matters of what is morally right and
morally wrong
Note from the outset that this absolute framing is
a dysfunctional conflict strategy
Moral values are inherently subjective, yet they
are usually held as nonnegotiable absolutes
In a dispute about a moral question, it’s difficult to
reach a win-win resolution
Among the specific tactics that may be helpful in
dealing with moral conflicts is reframing, that is,
finding a constructive new way to view a conflict
through a different lens or frame.
Other useful tactics include fractionating
Developing empathy
Attempting to build mutual trust

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Inde047 lect02 organization behavior

  • 1. INDE047 – Business Management for Engineers Part I Mohammad Tawfik November 2013 INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 2. Organizations Psychology, Leadership, Creativity, Conflicts, Destructive Behavior INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 3. How to Win Friends and Influence People Dale Carnegie 1937 INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 4. Fundamental Techniques In Handling People INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 5. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 6. Give honest and sincere appreciation INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 7. Arouse in the other person an eager want INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 8. Six Ways To Make People Like You INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 9. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 10. Smile! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 11. Remember Names INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 12. Encourage others to talk about themselves INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 13. Talk in terms of the other person's interests INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 14. Make the other person feel important INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 15. Win People To Your Way Of Thinking INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 16. The only way to get the best of an argument is to avoid it INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 17. Show respect for the other person's opinions INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 18. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 19. Get the other person saying "yes, yes" immediately INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 20. Let the other person do a great deal of the talking INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 21. Let the other person feel that the idea is his or hers INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 22. Try honestly to see things from the other person's point of view INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 23. Be sympathetic with the other person's ideas and desires INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 24. Appeal to the nobler motives INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 25. Dramatize your ideas INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 26. Throw down a challenge INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 27. Be a Leader INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 28. Begin with praise and honest appreciation INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 29. Call attention to people's mistakes indirectly INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 30. Talk about your own mistakes before criticizing the other person INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 31. Ask questions instead of giving direct orders INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 32. Let the other person save face INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 33. Praise the slightest improvement and praise every improvement INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 34. Give the other person a fine reputation to live up to INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 35. Use encouragement INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 36. Leadership and Motivation INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 37. Lead, follow, or get out of the way! Thomas Paine INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 38. The first basic ingredient of leadership is a guiding vision Warren Bennis INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 39. What is leadership? INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 40. Leadership is influence, nothing more, nothing less John C. Maxwell INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 41. If your actions inspire others to dream more, learn more, do more, and become more, you are a leader John Quicy Adams INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 42. Leaders should … INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 43. Have a Vision INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 44. Have a Vision INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 45. Set Goals INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 46. Set Action Plans INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 47. Monitor and Help INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 48. Build Teams INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 49. Gather People INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 50. Create Loyalty INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 51. Help and Care INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 52. Delegate INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 53. What? INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 54. Routine Tasks INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 55. Tasks that develop people INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 56. Occasional Duties INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 57. Outside his areas of expertise INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 58. How? INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 59. Clear INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 60. Specific INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 61. Share Setting INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 62. Inform INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 63. Monitor INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 64. Who? INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 65. Willing INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 66. Able INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 67. Learner INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 68. Looks for challenge INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 69. Develop People INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 70. Leaders Create Leaders INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 71. Identify Competencies INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 72. Understand Needs and Style INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 73. Motivating People INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 74. Laws of Motivation Richard Denny INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 75. 1- To Motivate you have to be Motivated INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 76. Motivating Yourself INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 77. You must manage yourself before you can lead others Zig Ziglar 1926-2012 INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 78. Set Goals INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 79. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 80. Seize the moment to act INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 81. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 82. Have persistence INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 83. Build your Willpower INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 84. 2- Motivation Requires a Goal “I will only settle for world INDE047 – Business Management for Engineers: Part domination” I Mohammad Tawfik, PhD
  • 85. 3- Motivation Never Lasts INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 86. 4- Recognition Motivates INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 87. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 88. 4- To Motivate, Recognize Needs INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 89. ● Basic human needs Leave a legacy Live Learn Love INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 90. How to De-Motivate? INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 91. Focus on rewards! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 92. Do not give enough trust! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 93. Reward the wrong attitude! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 94. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD Do not communicate!
  • 95. Focus on Cost! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 96. How to Motivate? INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 97. The SCARF Model David Rock INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 98. Status Fairness Certainty Motivate by: David Rock “Your Brain at Work” Relatedness Autonomy INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 99. What Motivates People Daniel Pink INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 100. Autonomy Motivation Purpose Mastery INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 101. Innovation! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 102. Innovation is the key! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 103. Bringing creative ideas to life INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 104. WARNING! • Nothing really insures that you will get an innovative idea in any field, rather, suggestions of things that you may do can increase the possibility of getting one INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 105. Curiosity! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 106. Explore! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 107. Serendipity! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 108. Diversify the search! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 109. Network! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 110. Exercise hunting .. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 111. Exaptation INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 112. Be Agile … INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 113. Love your mistakes… INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 114. Study them … INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 115. Even celebrate them! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 116. Some noise is not so bad after all … INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 117. I said “some” … not all! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 118. The Russian nesting dolls! INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 119. Empty the bag … INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 120. Destructive habits in organizations and projects INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 121. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 122. Why Do Good Companies Go Bad? • In a nutshell: Good companies fail when they are unable or unwilling to change when their external environment changes significantly. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 124. Denial INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 125. What leads to Denial? • Denial of emerging technologies. Denial of changing consumer tastes. Denial of the new global environment INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 126. Signs of Denial • “Hey, we’re different, so there’s no way it can happen to us.” The company is too proud to admit that someone else has come up with a better way. The company ignores, rationalizes, or blames others for its situation instead of admitting its fault. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 127. How to break the habit of denial Look for it INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 128. How to break the habit of denial INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 129. How to break the habit of denial INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 130. Arrogance INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 131. What is Arrogance? • Offensive display of: Superiority Self-importance Pride Disdain (contempt) … because of an inflated sense of self INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 132. What leads to Arrogance? • Exceptional achievement in the past David conquers Goliath The company pioneers a product or service INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 133. Signs of Arrogance • The company stops listening The company becomes extravagantly eager to show off. The company begins to act like a bully, both internally and externally. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 134. Signs of Arrogance • The company becomes high-handed and abuses rules The company favors those who validate its views and gets rid of those who are critical. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 135. How to break the habit of arrogance? • Rotate management to new challenges. Implement nontraditional succession planning. Diversify the talent. Change the leadership. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 136. Complacency INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 137. What is Complacency? • Complacency is the sense of security and comfort that derives from the belief that the success that’s taken place in the past will continue indefinitely. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 138. What leads to Complacency? INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 139. What leads to Complacency? INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 140. Signs of Complacency • The company is in no hurry to make decisions. The company’s processes are overly bureaucratic. Everybody has to get on board before a decision is made. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 141. Signs of Complacency • The company is completely vertically integrated. Enormous cross-subsidies are in place – by functions, by products, by markets, by customers. Average costing and average pricing prevail. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 142. How to break Complacency? • Reengineer to achieve high quality, eliminate waste, and reduce inefficiency. Decentralize profit and loss by creating and molding business units around products or geographies. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 143. How to break Complacency? • Outsource – contract out all non-core functions. Reenergize – consider a new leader with a positive, opportunity-oriented vision INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 144. Competency Dependence INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 145. What is Competency Dependence? • Somebody else can be doing a better job, and if a company is unable to figure out what to do, it has become competencydependent INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 146. What leads to Competency Dependence? • R&D dependence Design dependence Sales dependence Service dependence INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 147. Signs of Competency Dependence • Reengineering, reorganization, retooling have been tried and still no good results. The thrill is gone and the company is in a funk. Stakeholders are leaving INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 148. How to break Competency Dependence? • Find new applications where the same competency results in new value. Determine new markets where the same competency remains an asset. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 149. How to break Competency Dependence? • Expand the range of your competencies by moving up or down the value chain. Refocus company resources into areas with more growth and profit potential. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 150. Competitive Myopia INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 151. What is Competitive Myopia? • When they define their competition too narrowly and acknowledge only direct and immediate competitors INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 152. What leads to Competitive Myopia? • The natural evolution of the industry. . INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 153. What leads to Competitive Myopia? The clustering phenomenon. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 154. Signs of Competitive Myopia A company allows small niche players to coexist with it. The loyalty of a company’s supplier is won by a nontraditional competitor. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 155. Signs of Competitive Myopia New entrants, especially those from emerging economies, are underestimated. The company becomes helpless against a substitute technology. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 156. How to break Competitive Myopia? Broaden the scope of the product or market. Consolidate to squeeze out excess capacity. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 157. How to break Competitive Myopia? Counterattack the nontraditional competitors. Refocus on the core business to concentrate limited resources in the most successful area. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 158. Volume Obsession INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 159. What is Volume Obsession? • Too much money is being spent for the company to make money. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 160. What leads to Volume Obsession? The high-margin pioneer. The fast-growth phenomenon The paradox of scale. The ball and chain of unintended obligations INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 161. Signs of Volume Obsession Guideline-free, ad hoc spending. Functional-level cost centers. A culture of cross-subsidies. Stakeholders say numbers are not good. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 162. How to break Volume Obsession? Identify where the company’s costs are. Convert cost centers into revenue centers or profit centers. Move from vertical integration to “virtual integration”. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 163. How to break Volume Obsession? Outsource non-core functions. Reengineer to automate processes to improve cost efficiency. Implement target costing Become a world-class customer. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 164. The Territorial Impulse INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 165. What is Territorial Impulse? • As companies grow they tend to organize themselves into “functional” and later “regional silos”. However, the various units into which companies organize themselves don’t always get along well with each other, for various reasons. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 166. What leads to Territorial Impulse? The corporate ivory tower. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 167. What leads to Territorial Impulse? Growth requires the institution of formal policies and procedures. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 168. What leads to Territorial Impulse? The informal, spontaneous culture is extinguished. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 169. What leads to Territorial Impulse? A company’s culture is dominated by one functional specialty. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 170. Signs of Territorial Impulse Dissension - a lot of headstrong lieutenants instead of one strong general Indecision – decision-making is an agonizing or even impossible process INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 171. Signs of Territorial Impulse Confusion – one side doesn’t know what the other side is up to Malaise – nobody’s happy INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 172. How to break Territorial Impulse? The leader must bring all the people together in a common cause. Rotate the people in and out of different functional or geographic silos. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 173. How to break Territorial Impulse? Create permanent cross-functional teams. Reorganize around customers or products rather than around function or geography. INDE047 – Business Management for Engineers: Part I Mohammad Tawfik, PhD
  • 174. Conflict Management ● Based on the lectures on “The art of Conflict Management” by Michael Dues, the teaching Company
  • 176. What is a conflict? ● ● “An expressed struggle between at least two interdependent parties who perceive incompatible goals, scarce resources, and interference from others in achieving their goals.” Or Simply: “discomforting difference.”
  • 182. Conflict may be useful! ● Bringing to the surface, problems that were not clear before
  • 183. Most conflicts rise on how to reach the goal not on the goal itself
  • 184.
  • 185. To reach win-win resolution ... ● Identify common goals
  • 186. To reach win-win resolution ... Treat conflicts as a challenges that you can work on together to achieve a solution for both.
  • 187. Perhaps our greatest limitation in working toward win-win solutions is that each of us comes to the table with deep-seated ideas about conflict and powerfully ingrained strategies.
  • 188. Conflict does not arise so much from a difference itself but from the perception we have of that difference
  • 189. To reduce conflict ... Try to see situation from the other person's perspective
  • 190. Almost all of us tend to attribute mistakes or failings on our part to external events
  • 191. ... but we also tend to attribute the behavior of others to their own character or emotions
  • 192. We’re really emotional beings who have evolved an ability to reason that helps us deal with our emotions.
  • 193. Remember that emotion is an internal fact; it’s a response to perceptions you are having
  • 194. Being angry is not the same as acting on your anger
  • 195. Power How Much We Need and How to Use It?
  • 196. What is Power? ● Power can be defined as the ability to cause or influence an outcome.
  • 197. What is Power? ● Notice the difference between “influence” and “control”!
  • 198. Kinds of Power ● Personal power, such as talents, skills, or knowledge that we may have;
  • 199. Kinds of Power ● Relational power, that is, the power that derives from the nature of the relationship between the parties;
  • 200. Kinds of Power ● Situational power, the conditions in the conflict situation that give power to one party or one issue more than another
  • 201. Five Bases of Power John French and Bertram Raven
  • 207. The important point to remember is that both parties have power in any conflict and that power derives from the interdependence between the two parties in general and the particular situation they are in
  • 209. ● You do not need more power!
  • 210. ● You need sufficient interdependence!!!
  • 211. The more equal the conflicting parties are in power, the better the chances are of working out a win-win resolution
  • 223. Principles for Win-Win Negotiations Roger Fisher and William Ury
  • 224. Separate people from the problem Focus on events or behaviors rather than the parties involved.
  • 225. Focus on interests, not positions Do not take a position and defend it or bargain for it but to focus on the interest behind the position
  • 226. Generate options for mutual gain Brainstorm for multiple options, keeping in mind the goal of mutual gain
  • 227. The choice of objective criteria Try to identify measurable ways to assess the value of the suggestions
  • 228. Identify your BATNA Best Alternative to Negotiated Agreement
  • 230. Conditions of Negotiation You are willing and Able to Negotiate Other Party is willing and Able to Negotiate
  • 231. Step 1 Define the conflict issue (What and Why)
  • 232. Step 2 Identify and evaluate your goals
  • 233. Why do I want to resolve this conflict?
  • 234. What is a good resolution for me?
  • 235. How important is it to me that I reach this resolution?
  • 236. How do I want to be viewed by the other party?
  • 237. How does this situation affect the way I view myself?
  • 238. Step 3 Do you want to resolve the issue by negotiating?
  • 239. Consider the degree of interdependence
  • 240. Consider your leverage The ability to influence the other side to move closer to one's negotiating position
  • 241. Consider the context of the potential negotiation
  • 242. Consider the nature of your relationship
  • 243. Consider the risks of introducing the issue
  • 245. Step 4 Arrange a meeting with the other party
  • 247. Step 5 Conduct the meeting
  • 248. Step 6 Make a contract
  • 249. The contract must be clear
  • 250. The contract must address voluntary behavior from the present forward
  • 251. The contract must be an unequivocal agreement
  • 252. Step 7 Follow through on the contract
  • 253. Pay attention to the other party compliance with the agreement
  • 254. If the other party is in compliance, you should express your appreciation
  • 255. If the other party is not following the agreement, you should arrange another meeting
  • 257. All organizations are like living organisms, constantly moving, changing, and interacting, and a change in any one element affects the organization as a whole
  • 258. Some parts of the system operate informally and unofficially
  • 259. Managers and supervisors must improve conflict management within the organization in order to minimize costs.
  • 260. Seven key principles that can guide top supervisors and managers ...
  • 261. 1- Prevent unnecessary conflict ...
  • 262. Caused by creating competitive situations
  • 263. Caused by failing to clearly define roles and responsibilities
  • 264. Caused by failing to establish areas and lines of authority
  • 265. Caused by making decisions without consulting the stakeholders
  • 266. 2- Be courageous in the face of conflict
  • 267. 3- Focus on the general pattern of conflict management in the organization
  • 268. 4- Promote informal resolution of conflict
  • 269. by creating policies that state a preference for resolution by discussion, although with authority still specified for making final decisions
  • 270. 5- Formal processes need to be in place for conflict management
  • 271. 6- Assess and improve on the organizational culture
  • 272. 7- Model the behaviors they desire in conflict management
  • 273. Moral and Cultural Conflicts
  • 274. Moral conflicts are those in which the issues are framed as matters of what is morally right and morally wrong
  • 275. Note from the outset that this absolute framing is a dysfunctional conflict strategy
  • 276. Moral values are inherently subjective, yet they are usually held as nonnegotiable absolutes
  • 277. In a dispute about a moral question, it’s difficult to reach a win-win resolution
  • 278. Among the specific tactics that may be helpful in dealing with moral conflicts is reframing, that is, finding a constructive new way to view a conflict through a different lens or frame.
  • 279. Other useful tactics include fractionating
  • 281. Attempting to build mutual trust