Michael M B asked:
There are two types of employees as far as an organization is concerned – those who lead and those who follow the leaders – and both have their own place and importance in an organization. If you fall in the former category, then you have crossed the first hurdle towards becoming a successful manager.
Amongst all the skills needed for a career in business administration or management, leadership skills perhaps rank the highest. The ability to direct others, motivate them to perform, lead by example, while working as part of a team are hallmark of a great manager.
The lure of becoming a leader apart, there are several reasons why a business administration degree is one of the most popular college degree programs of our time. The first reason, of course, is the golden gate to opportunity that it opens. Students who graduate with a degree in business administration are sought after by companies looking for confident individuals skilled in critical decision-making, strategic planning, leading teams, and devising ways to make businesses viable and profitable.
These skills are sought after not just by the private sector, but also by the government and non-profit sectors. In fact, widespread job losses in corporate America have led many B-school graduates to turn their interest towards the government and non-profit sectors. And the interest is mutual with federal agencies and non-profit organizations looking to hire more and more business administration degree graduates through innovative recruitment programs.
While graduates are aware of the difference between a corporate and government salary, many take up federal opportunities in order to use their skills and knowledge to do things that have a much larger impact than their corporate jobs can ever have. Some of the federal agencies that actively recruit business administration graduates are the U.S. Department of Labor, U.S. Postal Service, Department of Veteran Affairs, Department of Defense, etc.
According to Call to Serve, an organization dedicated to providing information on federal careers, more than 200,000 individuals are employed in business careers across the various federal agencies and departments.*
Even though several indicators point to growth in employment of business students in these sectors, it is safe to assume that the first choice of most business administration degree graduates remains the private sector. One of the main reasons, of course, is the huge earning potential that corporate jobs have. Although the compensation package given to business managers may vary, they can earn anywhere between $30,000 and $100,000 an year.**
Other than financial security, the corporate or private sectors offers them ample job opportunities, diverse roles, plum positions straight out of school, faster advancement to key leadership roles, challenging work environment, and a chance to work in a geographic location of their choice.
Whether you want to tread a different path by opting for a federal or non-profit opportunity or chart your own course in a corporate job – a degree in business administration is your ticket to success.
* http://www.makingthedifference.org/federalcareers/business.shtml
** http://www.bls.gov/oco/ocos010.htm
Claire Jarrett asked:
Business meetings may involve just a few individuals, or at times, many people. Not everybody is born with the talent to address so many people, especially when the object is to promote an idea or product or explain some financial statement. It may involve the takeover of a business, starting of new business, or negotiations of a deal. It may be called to obtain the approval of shareholders to sell assets of the company, or raise share capital. It may be necessary to consult experts or partners on any business matter, or plan how to deploy surplus monies on hand.
Even briefing meetings and brainstorming meetings for coming out of any crisis can be classified as business meetings. Periodical review of productivity, marketing, and financial liabilities, etc., are all part and parcel of business meetings, as are pitch sessions. Likewise, meetings where personnel requirements, and other issues related to personnel are discussed also qualify as business meetings. In addition to these, there might be creditors, and debtors meetings.
Based on the type of business that is to be conducted, meetings may be classified as conferences, seminars, board meetings, annual general meetings, extraordinary general meetings, creditors, meetings, debtors meeting and sales meetings.
Any business meeting should be conducted with a predefined agenda. This is absolutely essential otherwise the matters that are discussed at the meeting may end up completely overshadowing the important matters that need to be resolved immediately. The agenda may be accompanied by some documents providing details and explanations on various items in the agenda. This enables the recipients to mull over the contents, and come up with their input on the matter.
A reasonable notice needs to be given so that no stakeholder feels excluded from the meeting. The time and venue of the meeting too needs to be clearly defined in such notice.
There are legal provisions for calling shareholders meetings, and board meetings. When the meeting involves just a few individuals, like a board meeting, then such notice may be given verbally. But it is always advisable to have documentary evidence, or an email to prove that the meeting was called, and reasonable notice was given.
Since one discussion can lead to another and the meetings can end up nowhere, it is always better to conclude matters that can be resolved quickly first, and keep complex matters that require extensive discussions for later part of the meeting. For ensuring this, there has to be somebody who conducts the meeting, and opens each item for discussion and resolution. It is the responsibility of this person to ensure that the matters discussed do not deviate from what is stated in the notice or agenda. The person leading the meeting needs to ensure that any new matters if made are duly noted so that another meeting may be called, and opinions of all concerned on the matter can be obtained.
Another problem with large gathering is that people tend to repeat the same questions or the same opinions. The person conducting the meeting needs to ensure that this is minimized, as everybody’s time is valuable. Using a timer helps.
Saberi Roy asked:
On the different aspects of consumer and employee needs that are included within the psychology of business.
The modern world is dominated by global businesses and corporate houses and any large scale enterprise requires a systematic understanding of employee and consumer demands, both material and non-material. The performance of business organizations depends on the performance of employees and the needs and expectations of the consumers, and so the ‘human’ factor is central to the success of any business. In recent years, say from the last part of the 20th century, there have been several changes in our understanding of human nature as it relates to work and performance in organizations and the primary focus in now on communication, leadership skills, and employee satisfaction. All these factors are important in enhancing the overall performance of any business organization.
The psychology of business is thus primarily the psychology of employees and the psychology of consumers and it’s the organization that is responsible for maintaining the balance between consumer demands and employee demands.
The Psychology of Employees - First let us talk about the psychology of employees. Any business house is operated by a number of employees and some of them are part of the higher management and are also considered as partners of business. The major elements that should be part of understanding the psychology of employees would be
1. Communication – Employee communication and understanding of business goals is an integral part of success and it is the duty of the management of an organisation to maintain direct and clear communication procedures through video conferences or seminars and presentations that would clearly state the mission and vision of the company. The communication between management and the other employees is thus a key aspect of employee or personnel psychology
2. Leadership – Any human resource manager or career counselor would focus first on developing leadership skills and leadership is an integral part of business because our inner leadership skills help us to break the mould and do something different and pioneering. Leadership skills in employees are important as team leaders in an organization are required to motivate other employees to attain certain company objectives. Leadership is thus closely related to motivation as a highly motivated individual will also be more likely to show leadership skills
3. Satisfaction – Employee satisfaction is an important aspect of business and we hear of several companies declaring large pay packages and incentives to retain the best talent. Job satisfaction, material satisfaction in terms of salary and bonuses, and social satisfaction with regard to the work ambiance are essential aspects of business and all businesses will have to pay specific attention to employee social, financial and emotional satisfaction. Fulfilling the needs of employees should be the primary focus of companies and this could be in accordance with Maslow’s hierarchy of needs in which it has been suggested that financial security, personal safety would be very important to humans followed by emotional need for social contact and connection and then we have esteem needs for social status and reputation.
Employee psychology is thus based on these three major factors or elements of business and all businesses should pay considerable attention to employee communication, leadership and motivation and employee satisfaction as essential aspects of psychology of business that can in turn enhance performance.
The Psychology of Clients/Consumers - Apart from employees, the consumers or customers are an integral aspect of business and the business management or corporate heads will have to understand the needs of customers as well in order to expand their business potential. Consumer psychology is based on several elements and this has a direct relation to whether businesses will thrive in a competitive global environment. Consumer psychology is shaped by the following related factors.
1. Innovation – Consumers are ever curious and eager to buy new products and services and their own expectations and satisfaction tend to drive business innovation. Innovation is the direct result of consumer necessities and any innovative or novel product immediately gets consumer attention. The apple iPod or iPhone attracted consumer attention with the novelty so innovation as it relates to business has a direct impact on consumer psychology.
2. Branding – Brands indicate social status and many individuals prefer to buy branded products as these products promise quality and enhances social prestige. Women spend thousands on Gucci or Chanel products simply they want to be seen with designer clothes, shoes and accessories. Designer brands apart, regular brands for food products let’s say Kellogs or Nestle are company names which are perceived as brands signifying quality. Consumers are not just interested in innovation and innovative products but they are also interested in familiarity and thus innovative products of renowned/familiar brands or companies are the most successful in the market. Psychologically we are seekers of novelty and we are also seekers of familiarity and a certain amount of routine. Thus both these needs have to be balanced in case of consumer expectations and only then businesses can be successful. Brands are synonymous with company reputation and increase consumer confidence.
3. Performance – Company performance in terms of stock market indications, annual reports, projections of company profits improve consumer confidence and in business performance drives performance. Thus if a company’s prospects are bright and company growth is projected, the business halo effect works immediately and further improves business. When employee psychological factors should be considered to enhance company performance, performance in turn is a factor to meet consumer psychological demands. So business performance is a two way process, it is driven by consumer expectations and drives employee contribution.
Thus consumer psychology which is based on demands and expectations for products and services are guided by these following factors of the extent of innovativeness of a company, the brand or reputation of the company and the performance of the business organization. Employee psychology which in turn is also based on demands and expectations of employees highlights the extent to which they have communication facilities and the extent to which employees are motivated or satisfied in their jobs.
Thus the psychology of business has two distinct branches – that which deals with employee interests and that which deals with consumer interests and although these can at times overlap, the elements are distinct and I have tried to differentiate between the key elements of consumer business psychology and employee business psychology. Thus any composite organizational business psychology will consist of both these aspects of employee personal development through human resource management consisting of elements of motivation/leadership, communication and satisfaction; and expansion of consumer base through organisational goal achievements through performance, innovation and branding.
Apart from the elements discussed here, business psychology involves a whole gamut of psychological aspects considering needs of consumers, employees and the organization in general and this is also closely related with advertising, marketing, and business orientation and objectives of a company. In fact business psychology should also include company strategies as basic elements of an organizational psychology as well. Thus business psychology is comprehensive including consumer needs and employee needs and although these needs may encompass organizational needs, a distinct organizational psychology could well be drawn out from this and I will take this up in a latter discussion of this ongoing series in psychology.
Bette Daoust, Ph.D. asked:
Before we begin a thorough discussion of business pain, let’s take a look at what it really means. The words Business Pain are batted around by almost everyone I talk to in the marketing and sales fields. It is probably one of the more misused words when describing the help a company needs to become more efficient and effective. When you try to find out what a business worries about, you will find that you get a different answer from each person you talk to in the organization. That is because the “business pain” will be different for each department or section. The sales force will likely tell you that the pain is not getting orders out on time. The order department will say that the sales force over promises, the administration will say that expenses are too high, and the executive will say that there are not enough profits. All of them will be correct. So how do you determine what the real pain is?
If you begin with the top decision makers, they will have an overall picture of where they think there company should be in the way of market share and profitability. This big picture will show you where they currently are and where they want to go. It is here that the decisions are made to make improvements. It is also here that the risk is identified and the plans to alleviate the pain are put together. If you want the true definition of business pain, start with the CEO and then piece together the other parts that cause the pain as described.
Nothing is more thrilling than working with a company that can define what it is that they are not doing right. Unfortunately, most companies are not able to pinpoint their problems with accuracy. They can see the symptoms but usually not the probable cause. So when you learn about the business pain, you should be prepared to offer solutions that fit the problem.